A recent article from the Business Standard states: “A fall in demand in China and India, the two most important markets for diamonds after the US, coupled with banks' growing reluctance to provide finance to the precious gemstone trade, has led to a decline of about 15 per cent in rough diamond prices since the beginning of this year. The fall for five consecutive quarters happens to be the longest stretch of a decline in the value of diamonds in a decade. But, prices of the commodity are yet to hit the bottom. Trade officials say prices of roughs have to fall another 20 per cent to make downstream operations, from cutting and polishing to making and selling of jewellery, viable.”
The link to the article is below:
http://www.business-standard.com/ar...-sparkle-back-to-diamonds-115101300051_1.html
Given this, it would be useful for KDL to make some comment around recent price falls as how they might relate to Lerala – and/or show in their presentation the sensitivity of their Lerala project to diamond price fluctuations – and what their anticipated break-even cost of production is.
