The emerald market is an artisanal market, with small mining operations, mostly with significant potential to improve production and safety. There are three privately held major producers, the largest of which employs modern mining and security techniques.
The high-quality portion of the emerald sector has consistently been a high margin business, with margins ranging from 50% to 100% for ‘cut stones’. However, production is often variable due to the nature of the emerald deposits.
We will be looking at several opportunities with ‘marque’ (or internationally known) mines that have produced high-quality stones in the past with good prospects for further exploitation and improved cost efficiencies.
As an initial investment, we may start with a smaller, lower cost artisanal mine producing quality gems, to establish early production. This mine will be either in production or close to production with all mining and environmental licences in hand.
Our strategic medium-term goal is to take a substantial equity stake and take over operations of a selected marque mine in the next year or so, as the opportunity presents itself.
We will also be steadily developing our exploration portfolio to move the licences to mining and environmental approvals, and then into production.
Our approach will be to bring modern technology and production techniques to enhance production, and security, and to improve health and safety. At all times we will maintain a firm policy on environmental and in support of the community.