An emerging fast-growing Australian diamond company, Burgundy Diamond Mines (BDM), has signed purchase agreements with two companies to buy further fancy colour rough diamonds. The stones are expected to be cut in-house by the Perth-based company, before being sold at a significant margin.
The company is purchasing a parcel of approximately 350 carats of between two and five-carat stones produced in 2009 at the former Ellendale Mine. The diamonds had been sold by previous owners Gem Diamonds in 2009 to an Antwerp diamantaire, who had kept them in stock before agreeing to sell them to Burgundy.
Burgundy is also buying a parcel of around 150 carats of Fancy Yellow rough diamonds from the Arctic Canadian Diamond Company. The total investment for the raw diamond parcels is around $4.5 million, with Burgundy predicting that the diamonds would sell for several multiples of the amount paid by the company. The purchases follow the company’s first acquisition of rough diamonds announced in September.
Burgundy Managing Director and CEO Peter Ravenscroft said: “The purchase of these two parcels of rough diamonds represents continued execution of our strategy to produce revenue from cutting and polishing third-party rough diamonds while building towards our in-house production. Accessing an outstanding parcel of stones produced from the former Ellendale Mine has the added advantage of establishing our processes in preparation for our production, and also showcasing these highly prized Fancy Yellow diamonds as part of our ultra-luxury brand offering.”
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
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