Daily SP Discussion

The diamond industry is currently facing significant challenges, but what is particularly concerning is the apparent lack of creativity and innovation from the leadership at Burgundy Diamond Mines (BDM). The CEO, Board, and senior management appear to be adopting a one-dimensional approach, which is starkly reflected in the company's share price. While Kim Truter is a seasoned miner he has no experience beyond the mine gate, the Board also lacks the expertise necessary to successfully execute the much-anticipated, much vaunted Mine-to-Consumer vertical integration. Beyond the mine gate, there seems to be no clear roadmap, vision, or strategy in place. In contrast, companies like HB Antwerp and Lucara Diamond Corp have demonstrated creativity and innovation, avoiding the one-dimensional pitfalls that BDM has fallen into. There are also concerns about the status of the Perth facility. Truter mentioned sales to staff—if staff sales represent the extent of BDM's vertical integration efforts, then the company is in serious trouble. Furthermore, it's unclear what progress, if any, has been made with the Maison Mazerea brand, which initially showed some potential -https://www.naturaldiamonds.com/rare/maison-mazerea-the-worlds-first-haute-diamantaire-maison/
Lastly, with the involvement of Choron to the Board, which primarily operates in the B2B wholesale segment, it remains doubtful whether this will contribute anything meaningful to BDM's vertical integration strategy. If I was buying rough from BDM I would assume Choron would be ‘cherry picking’ the best material for themselves - huge conflict of interest here.
BDM must urgently reconsider its approach and bring forward a clear, innovative strategy if it hopes to bolster the share price and avoid a slide into single digit share price!