Stornoway Seeing Diamonds as Renard Valuations Rise 56%
Posted on June 13 2011
The Canadian diamond mining company, Stornoway Diamond Corporation, have struck gold. (Or in this case, diamonds) The valuation of the sample diamonds mined from its Renard expedition has seen a drastic jump as high as 56%. This is a rather large increase from its last sample valuation in 2009.
The diamonds were sampled by the WWW International Diamond Consultants based in Belgium with estimates from up to four other diamond corporations.
The diamond samples from the Renard-2 and Renard-3 pipelines are now priced at $182 per carat, up $66 from the last valuation. Also, the diamonds from the Renard-4 pipeline is now valued at $112 per carat, up from $75 in 2009 which gives us an increase of 49%
This is great news for the mining company, as the world economy braces itself for the second dip in the double dip recession. Because the of the rise of prices in commodities and precious gems and metals during economic the economic downturn, Stornoway has only clear blue (diamond) skies to look ahead to.
CEO Matt Manson was happy to comment, “Our feasibility study, which is on track for delivery in the third quarter, will outline a project with a high production rate, high diamond price, long mine life potential, and available road and power infrastructure in a leading, pro-mining jurisdiction.”
The Renard Diamond Project is slated to unearth 30 million carats in diamonds over the course of 25 years. With a total of $511 million dollars invested currently, and the current pre-tax Net Present Value of C$885 million, the venture looks quite promising.