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Additional Information
Market: AIM
Sector: General Mining - Diamonds & Gemstones
EPIC: STEL
Latest Price: 2.88p  (0,00%)
52-week High: 8.00p
52-week Low: 2.50p
Market Cap: 8.17M
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Stellar Diamonds
www.stellar-diamonds.com/s/Home.asp

Stellar Diamonds plc is a London listed (AIM:STEL) diamond exploration and development company that is focused on the West African countries of Sierra Leone and Guinea.  Stellar has an advanced portfolio of high grade kimberlites that are currently subject to resource definition thorugh drilling, bulk sampling and trial mining.  Initial resource statements are expected in early 2011 from Tongo and Droujba.  In addition, Stellar has also mined and sold over 125,000 carats of diamonds from two alluvial operations in Guinea. 

Full Stellar Diamonds profile here
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Diamond fundamentals intact, says Northland

23rd Nov 2011, 2:16 pm by Philip Whiterow Forget the fall in diamond prices, there are some sparkling opportunities out there, says Northland.

Recent falls in the average price of diamonds in the UK should not deter investors in Stellar Diamonds (LON:STEL) and Petra Diamonds (LON:PDL), says broker Northland Capital.

The weighted average UK diamond share price fell 12p (8 per cent) from 164p on the 11 November to 152p on the 18 November.

Composite polished diamond prices also dipped $0.49/Ct to $157.95/Ct over the same interval and have dipped at an increased rate at the beginning of this week. The dip in polished diamond prices was partly a result of a short-term decrease in demand from China, driven by the instability in the European financial markets said Northland.

But the broker added that composite polished diamond prices are up $45 compared with last year’s figures, showing an increased strength in the market compared to last year while the long term supply/demand fundamentals of the diamond market have not changed.

Global demand for diamonds is expected to increase, driven by the growth of wealth in India and China, which is occurring alongside a medium to long term decline in the global production of diamonds.

Production is also falling due to existing operations ageing and a lack of new discoveries, with only three significant discoveries made in the past 30 years, with the last of these the Diavick Deposit discovered in 1994.

According to Northland, Stellar Diamonds and Petra Diamonds both remain buys and both have significant upside potential.

Forecasts and valuations for both remain unchanged despite the recent price weakness, it added, with a share price target of 14.3p for Stellar and 200p for Petra versus the current market prices of 3.6p and 99.1p respectively.

West Africa focused Stellar said last month it was on track to track to produce a maiden JORC-compliant independent resource estimate for the Droujba and Tongo kimberlites in the first quarter of 2012, adding it was “extremely pleased” with the progress made during the full year to end June 2011.

Northland is Stellar Diamond’s broker.

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