Recently, Diamcor Mining Inc reported the unaudited consolidated financial statements for the interim period ended December 31, 2023, Management Discussion & Analysis for the Interim Period Ended December 31, 2023. Talking about Diamond Prices and Demand for Diamonds, Diamcor report said, the profitability of Diamcor will be dependent upon the recovery and sale of rough diamonds, which is dependent in significant part upon the worldwide demand for, and price of, diamonds.
Diamond prices fluctuate and are affected by numerous factors beyond the control of the Company, including but not limited to worldwide economic trends, particularly in the US, Japan, China and India, worldwide levels of diamond discovery and production and the level of demand for, and discretionary spending on, luxury goods such as diamonds and jewelry.
Low or negative growth in the worldwide economy or the occurrence of terrorist activities or other events creating disruptions in economic growth could result in decreased demand for luxury goods such as diamonds, thereby negatively affecting the price of diamonds.
Similarly, a substantial increase in the worldwide level of diamond production could also negatively affect the price of diamonds. In each case, such developments could materially adversely affect the Company’s results of operations.
In total, ongoing trial mining exercises at the Project from inception thru December 31, 2023, have resulted in the incidental recovery, tender, and sale of 201,461.57 carats of rough diamonds generating revenue at the Project of (USD) $38,736,712.34, resulting in an average price of (USD) $192.52 per carat.
