RBC Capital Markets downgraded the corporation Dominion Diamond Corporation. Analysts predict a reduction in the price of diamonds and call prospects for the development of the project Jay (Jay) «controversial».
Rating shares mining company was lowered from "overweight" to "at the level of the sector", according to a research note dated June 13th. RBC also lowered the target price for shares of the mining company from $ 13 to $ 11 per share.
This decision was made after the mining company about two years pushed the development of the Project Jay, which is expected to increase by ten years of life of the Dominion-owned Ekati diamond mine (Ekati) in Canada.
"Currently low prices for small diamonds in combination with the relatively high capital costs are putting pressure on the mood around the project of Jay - wrote in a note dated June 13 RBC analysts Des Kilalea (Des Kilalea) and Richard Hatch (Richard Hatch). - Until we see a noteworthy plan designed by Jay and the rise in diamond prices, we expect the company's shares will keep up with the shares of comparable companies. "
" In our view, the market for rough diamonds in the summer going to happen weakening of prices, which, it is hoped, later this year strengthened slightly, "- concluded the RBC.
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The Gem and Jewelery Export Promotion Council (GJEPC) has decided to launch a campaign to promote diamonds in key export markets such as China, Latin America and the Middle East, DIB Online reported citing On the Indian newspaper Economic Times.
GVEPC chairman Praveenshankar Pandya said that the campaign will be carried out in cooperation with extractive companies that are the largest stakeholders in the industry and added that negotiations with them have already begun and will be completed within a month, the source said.
Pandya also noted that the GJEPC will "seek that the Government of India enter into bilateral agreements with countries such as Russia and Indonesia,
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