RE: Research note due an upgrade2 Aug 2023 19:31
Our valuation represents only the current economic potential of Lahtojoki, and not
any additional exploration upside from the discovery of new diamondiferous
kimberlites that could be present in the project area. For prudence purposes, we
have not at this stage incorporated any exploration and discovery uplift from the
Kuhmo project area, including the potential for green diamond mining.
The market has not to date understood Karelian’s potential to benefit from the
exploitation and mining of pink diamonds and the substantial economic uplift
attainable, which thus represents today’s buying opportunity. We therefore
recommend Karelian Diamond Resources as a ‘Buy’ with a 12-month price
target of 35p.