Should you hold these 2 precious metal stocks as good as a diamond?

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Should you hold these 2 precious metal stocks as good as a diamond?

 Should you hold these 2 precious metal stocks as good as a diamond?
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Highlights 

  • Gem Diamonds Limited recorded a revenue of US$104.5 million in H1 2021 ended 30 June 2021 compared to US$69.5 million in H1 2020.
  • Botswana Diamonds announced a 2-year license renewal of its Ghaghoo diamond mine. The license is a part of its joint venture with Burgundy and Diamexstrat Diamond Mines.

Mining stocks may belong to companies engaged in the exploration, extraction, and processing of deposits of valuable materials and minerals. Many of these minerals are crucial for the functioning of the economy and hence are in high demand, thus leading to a rise in their prices during periods of economic expansion. 

Mining stocks belonging to companies engaged in extracting and processing diamonds may be of specific interest to investors due to their attractive returns. Let us, deep dive, into two such stocks - Gem Diamonds Limited and Botswana Diamonds Plc and explore the investment potential in them.

Gem (GEMD) & Botswana Diamonds (BOD): One year return and market cap

(Data source: Refinitiv)

Gem Diamonds Limited (LON: GEMD)

Gem Diamonds is an international diamond producer with mining operations in Botswana and Lesotho. In August, Gem Diamonds announced the sale of its subsidiary to Okwa Diamonds for $4 million.

The shares of Gem Diamonds Limited are currently trading at GBX 58.00, up by 3.02% at 12:23 PM GMT+1 on 8 October 2021.

Gem Diamonds Limited recorded a revenue of US$104.5 million in H1 2021 ended 30 June 2021 compared to US$69.5 million in H1 2020. Its underlying EBITDA reached US$34.7 million in H1 2021 compared to US$11.3 million in H1 2020.

The shares of Gem Diamonds Limited returned 61.44% in the last one year to shareholders, and the market cap of the company stands at £79.10 million as of 8 October 2021.

Botswana Diamonds Plc (LON: BOD)

Botswana Diamonds Plc is an AIM-listed company engaged in diamond exploration and project development. The company holds exploration licences in South Africa and Botswana. Recently, Botswana Diamonds announced a 2-year license renewal of its Ghaghoo diamond mine. The license is a part of its joint venture with Burgundy and Diamexstrat Diamond Mines.

The shares of Botswana Diamonds are currently trading at GBX 1.18, down by 16.07% at 12:35 PM GMT+1 on 8 October 2021.

Botswana Diamonds recorded a loss before taxation of £195k. It discovered a new diamond kimberlite mining site at the Thorny River, South Africa.

The shares of Botswana Diamonds returned 72.04% in the last one year to shareholders, and the market cap of the company stands at £11.10 million as of 8 October 2021

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