Here's the best bit....15 Feb 2023 08:52
Previous auctions of Zimbabwean diamonds have fetched an average of about $400 per carat, but this rises to $12,000 per carat for exceptional items. As a low ballpark, consider that VAST’s diamonds are below average, and sell for $300 per carat. At 129,400 carats, that’s $38.82 million. Excluding expenses, investors are looking at a rough profit of $35 million — more than double the current market cap.
And this excludes the value of its multiple exploratory operations. Of course, there’s also a possibility that the diamonds fetch the average of $400 a carat, or even far more.
This presents an interesting dilemma for the would-be investor. Assuming the diamonds are taken into possession and sold in a timely fashion, then the income should see the market cap at least double based purely on what would then be cash at hand. Indeed, it could go further than double, as VAST would then be well-capitalised to develop every asset it has at pace.