some comments about diamonds from rbc

Received a RBC capital report on african precious metals and diamonds companies...couple extracts re diamonds:

- Sound diamond market outlook - The two companies presenting, painted a sound outlook on rough diamond prices in the medium term as US and Chinese demand improves and the US recovers

- Market fundamentals remain: Diamond fundamentals remain favourable with supply declining (down 30% from 2005 to 2011; currently at ~120mct, rising to a longer term annual supply of 140mct) and demand growing (driven by growth of urbanisation and middle classes in emerging markets, particularly in China and India). In the near term, CEO Johan Dippenaar noted that the rough market has continued a firmer trend since November/December 2012 and that prices are up by 5-10% since the turn of the year. In addition, as prices for smaller goods (~80% of production) rise, it should see a further pick up in revenue.

Cdchi1