Merlin Diamonds Limited (ASX: MED)
Whilst we all know diamonds are a girl’s best friend, they could also be an investor’s best friend if one ASX listed company has anything to do with it.
This $10M capped company has a 100% holding of the second biggest diamond mine in Australia (formerly owned by Rio Tinto) that has produced the largest diamond ever found in in this country – measuring over 100 carats.
This company has just re-started production at the mine, which previously produced over half a million carats of high quality diamonds.
If this ASX stock can successfully re-establish a solid income here from diamond sales, and maybe even uncover a few more 100 carat rocks along the way, there will be a lot of happy wives, happy lives and happier investors on the diamond mining bandwagon.
As this ASX company is already in production, there could be plenty of upside in the stock over the near term, should its production return the mine to its glory days.
Previously the mine delivered over 2.2 million tonnes of ore which produced 507,000 diamond carats for Rio Tinto and Ashton Mining Limited.
Production re-commenced just a few weeks ago, and a cursory glance across the ASX shows very little in the way of pure diamond miners to compare this stock to.
There is Lucapa, capped at $155M – but that company is diamond mining in the much more volatile region of Angola. This $10M capped stock is diamond mining in the safe jurisdiction of Australia…
Could it start to play catch up in terms of valuation?
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This company has 80 exploration targets, prospective gem quality better than Rio’s Argyle diamond mine, a mine already back in production.
The stage is set for this company to return its Australian mine to its heyday, where it was producing some of the highest quality diamonds in the country.