Well it has been a torrid time for the old MJN shareholders but it looks as if we are about to see the results of the last 18 months of pain. Crown Diamonds is set to announce the settlement of the Star and Messina Diamond mines. These mines have an independent valuation of just under $40 million. There has bee a capital reconstruction and there is only just over 30 million shares on issue.. The mines that they have bought are already making a profit of around $1 million per year and this is before the capital injection to double their productivity.
There is already talk of a start on due diligence of a third mine as soon as settlement has occurred. With this third mine in its fold it is capable of being among the top five listed diamond producers. This could cause the instos to sit up and have a look but there is a lag period before that gives the retail investor a chance to have a look before the stock gets too pricey.
