Botswana Diamonds sees 7% narrowing in losses

Irish mineral prospector Botswana Diamonds has reported a near 7% decline in first-half losses.

The Dublin-headquartered company, which has its shares listed in London, yesterday reported an operating loss of £155,000 (€196,000) for the six months to the end of December; down 6.6% on the £166,000 interim loss reported last year.

The firm’s halfway pre-tax loss was down by 3%, year-on-year, at £161,000. Publication of the results came a day after the company announced that exploration work has begun at the two licences it shares with Russian diamond company Alrosa, in the Orapa region of Botswana.

Sampling started this week and drilling is expected to begin early next month.

Chairman John Teeling said that this is an important time for Botswana Diamonds and that the two licences have “great potential”.

Mr Teeling added that demand is set to pick-up for diamond products as billions of people from emerging nations join the middle classes.

“The economic slowdown in most Asian markets is causing a blip on the rising demand curve, particularly for gemstone quality stones,” he said.

“But this will be a temporary phase. The rise in the middle classes in many huge markets cannot be stopped, only delayed. When growth resumes so too will demand.

“All long-term forecasts for diamond demand show a rising curve, while supply is, at best, flat due to mine depletions.”