‘Material, newsworthy’ diamond finds on the rise – analyst – by Henry Lazenby (MiningWeekly.com – October 3, 2017)

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VANCOUVER (miningweekly.com) – There has been a marked increase in the number of publicly reported special diamond finds in recent years, with 61 of 66 press-released diamond finds in the last nine years taking place in the last five years, noted independent diamond industry analyst and consultant Paul Zimnisky in a new report published Monday.

The New York-based analyst dissected available press releases over the last nine years, looking for diamond producers reporting finds considered “special enough” that the company that discovered them subsequently issued a press release to announce the occasion.

For publicly traded companies, securities laws generally require notifying the public when a ‘material’ event occurs. “In this case ‘material’ typically means information that will have an impact on the company’s stock price, or the announcement will likely change the perceived value of the company’s stock.

Given the unusual asymmetric valuation of diamonds compared to other commodities, for a diamond miner, a material event could include the discovery of a single, very valuable diamond.

“The greater the value of the diamond recovered and the smaller the size of the company, the more material a diamond discovery is to a particular company,” Zimnisky stated in a report sent to Mining Weekly Online.

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