A Plus for Brazil Diamond Miners
Here's an interesting Tidbit.
Investment in Canadian Diamond mines may be weak for the next few years due to strong loonie (see excerpt below). That puts VAA in a more competitive position with its lower production costs being based in Brazil and it may mean less supply coming from Canada.
https://www.reportonbusiness.com/servlet/story/RTGAM.20080212.wrteck0212/BNStory/Business/?page=rss&id=RTGAM.20080212.wrteck0212
An excerpt:
Canadian diamonds, back in the rough
ANDY HOFFMAN
Globe and Mail Update
February 12, 2008 at 10:17 PM EST
As far as Don Lindsay is concerned,
Canadian diamonds look anything but friendly right now.
The country's gem miners are being ravaged by a soaring dollar and the head of Teck Cominco Ltd. said Tuesday that his company is no longer interested in investing in the diamond sector.
“At the moment, that move in
the Canadian dollar has really hurt the industry, so I doubt that we'd be making any moves there,” Mr. Lindsay said on a conference call to discuss Teck's fourth-quarter financial results.
Mr. Lindsay has said for years he was attracted to the diamond industry, but his about-face follows a series of serious financial setbacks for the few companies mining precious stones in the north.