Merlin Diamonds Limited MED is publicly listed on the Australian Stock Exchange, trading under the symbol MED. The Company is developing its flagship Merlin Diamond Mine Project in the Northern Territory, Australia with the aim of establishing a sustainable long term mining operation that delivers value to all stakeholders. In addition Merlin Diamond Limited is engaged in extensive exploration for further sources of diamonds in and around Merlin, and in other areas of the Company's tenement holdings associated with its North Kimberley and Arnhem Land projects.
The outlook for rough diamond prices is favourable with Edward Sterck, an analyst with BMO Capital markets, highlighting supply constraints and growing demand as fundamental drivers for diamond prices a rise 5% per year in real terms through to 20161.
Independent Diamond Valuers Pty Ltd recently completed valuations of the run of mine (ROM) rough diamond parcel, with the price now being assessed in excess of US$330 per carat. Independent Diamond Valuers Pty Ltd stated in their recent valuation, "The Merlin production was sold to the Antwerp market for a number of years by its previous owners Rio Tinto and Ashton Mining, during that period the Merlin production was a sought after item and which to this day is recognised by Diamantaires for its exceptional white content in the higher quality goods. Reintroducing the Merlin production to the market would be a relatively straight forward task and would certainly be well received by Diamantaires."
In 2012, the Company sold a portion of the 10,600 carats of diamonds recovered during the 2010 pre-feasibility production trials, with the larger diamonds retained by the Company. The sales generated proceeds of US$1.865 million. The small diamonds achieved a strong premium of 62% over the reserve price confirming the strong demand for high quality diamonds. The remaining large diamonds are yet to be sold. After the sale, eDiamonds, a diamond auction house, made the following comment on the Merlin diamond parcel. "Through price comparison and analysis of the market, eDiamond believes the achieved prices of the sold goods were very high. This is backed by numerous comments of important players on the market." This feedback supports our confidence in the quality and saleability of Merlin diamonds. The Company has retained a quantity of the larger diamonds, one of which has been cut and polished, for future sale and for marketing purposes. The diamonds from Merlin are known to be high clarity, super white, high value stones.
Merlin Diamond Limited offers a unique growth profile within the diamond sector, with its competitive advantage based on the quality of its diamonds. The Merlin mine has shown that it produces large stones of high quality and of a distinct 'super-white' colour, and by capitalising on this it will enable 'branding' and boutique marketing opportunities, facilitating the development of a uniquely Australian diamond brand.
1 Bloomberg TV interview January 2012
28 April 2017 Quarterly Report 31 March 2017 > Read more
29 March 2017 Merlin completes Entitlements Offer of $5.5m > Read more
23 March 2017 Entitlements Issue > Read more
16 March 2017 Half Year Financial Statements > Read more
16 March 2017 Entitlements issue - Alternate BPay Information > Read more
14 March 2017 Green diamonds recovered at Merlin diamond mine > Read more
6 March 2017 Letter to Ineligible shareholders re Entitlements Issue > Read more
6 March 2017 Letter to shareholders re Entitlement Issue > Read more
28 February 2017 Appendix 3B -New Issue Announcement > Read more
10 February 2017 Appendix 3B -New Issue Announcement > Read more