Shares of Burgundy Diamond Mines (ASX:BDM) close 14% stronger, here’s why

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Shares of Burgundy Diamond Mines (ASX:BDM) close 14% stronger, here’s why

 Shares of Burgundy Diamond Mines (ASX:BDM) close 14% stronger, here’s why
Image source: © Vitamancer | Megapixl.com

Highlights: 

  • Burgundy Diamond Mines recently struck a significant supply deal with Australia’s leading independent jeweller Solid Gold Diamond. 
  • The deal will use Burgundy’s signature brand of diamonds- Maison Mazerea, through a dual-stage agreement with Solid Gold. 
  • It is likely that Burgundy has been posting gains on the back of the same update. 

Australian diamond manufacturer Burgundy Diamond Mines Limited (ASX:BDM) shares buzzed into the green territory today and closed 14.705% stronger on the ASX today (10 August). The share price of Burgundy stood at AU$0.195 per share at the end of today’s trading session on the ASX.  

In a year’s time, the share price of Burgundy has fallen by 37.1% on the ASX. Furthermore, the diamond manufacturer’s YTD-based share price fell over 15% (on the ASX today). 

What pushed Burgundy Diamond’s share price on the ASX today? 

Of all the 11 sectors under the S&P/ASX 200 index, nine of them closed in red today, including the S&P/ASX 200 Materials sector (INDEXASX:XMJ). 

The S&P/ASX 200 Materials sector (INDEXASX:XMJ) closed today’s trading session at 15868.1 points after losing 166.9 points or 1.041% on the ASX today. 

On 3 August 2022, Burgundy announced that its brand Maison Mazerea had struck a two-stage agreement with one of the leading independent jewellers in Australia, Solid Gold Diamonds. 

The agreement consists of two stages. The first stage is related to bridal jewellery, which is expected to commence in August. Through this stage, Burgundy will present uniquely cut Maison Mazerea branded diamonds in Solid Gold’s bridal jewellery range. 

In stage two, both the company will collaborate to produce an exclusive fine jewellery collection featuring larger and higher value Maison Mazerea diamonds. The sales are expected to commence in October.  

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