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Liqhobong may get JSE debut
David McKay
Posted: Mon, 02 Apr 2007
[miningmx.com] -- AMONG existing and new mining listings on the JSE, there’s a dearth of diamond companies actually producing stones. Trans Hex is one. The others are explorers. So it’ll be interesting to see whether Roy Spencer, CEO of AIM-listed European Diamonds, opts for a Johannesburg listing.
“No doubt the company will be multi- or dual-listed,” said Spencer. Following nine meetings with South African institutions last week, he described half of them as supportive, and seemed impressed with the interest.
“Several groups would like to be involved [in a listing].” European Diamonds is currently working on a listing in Toronto.
Spencer has been a diamond miner – specifically kimberlites – for 40 years after leaving high school in Durban at 18. He worked in Australia and has developed some of that accent and even professes love for its cricket team. But he’s unmistakeably
South African. The mine he’s running for European Diamonds – Liqhobong – is in Lesotho.
Liqhobong has been kicking around for years. Like Letseng – the Lesotho diamond mine bought and listed in London by Clifford Elphick’s GEM Diamonds – Liqhobong spent time gathering dust. European Diamonds is currently producing around 20,000 carats/month from the mine, with plans for an expansion.
“They’re not wonderful stones. But they’re not rubbish either. I can sell them any day of the week,” said Spencer of Liqhobong’s output.
The plan is to spend R570m to R850m expanding Liqhobong. But European Diamonds has first to publish a pre-feasibility study that will show the need for a R50m power line (not easy), with resources down to R300m. They’ll also be a need for R14m to R15m to develop a full feasibility study.
European Diamonds, as it name suggests, has a prospect in Finland, but Spencer said the immediate future for the group partly lies in Lesotho. He has no plans to consider diamond exploration in either the Democratic Republic of Congo or Angola. “Those are for the majors,” he said.
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