Botswana Diamonds reports progress in 'difficult year' for industry

(Sharecast News) - Botswana Diamonds reported progress across its exploration portfolio for the year ended 30 June despite what it described as a "very difficult year for the diamond industry", as the AIM-listed company diversified into critical minerals and expanded the use of artificial intelligence in its exploration strategy.

Chairman John Teeling said the period was characterised by "strategic expansion, the adoption of advanced technologies, and the strengthening of our asset base across both diamond and critical metal exploration," adding that the group was entering its next phase "with renewed confidence, a broader portfolio, and a roadmap for value creation."

He noted that global diamond markets remained weak amid muted consumer spending, softer demand in China and inflationary pressures in the US, while the growing supply of lab-grown diamonds continued to compress prices in lower- to mid-value segments.

However, he said Botswana Diamonds' focus on higher-value stones meant it was better positioned, as "natural diamonds retain strong consumer preference and pricing resilience."

The AIM-traded company said conditions in the diamond supply chain improved later in the year as inventory levels normalised and some major producers introduced temporary production cuts and sales pauses, helping to stabilise prices.

Teeling said longer-term supply fundamentals remained favourable as many smaller operations become uneconomic and major producers approach peak output, supporting the company's strategy of prioritising value over volume in stable mining jurisdictions.

During the year, Botswana Diamonds broadened its strategic focus beyond diamonds into critical minerals, particularly copper, while maintaining its core diamond exploration activities.

Teeling said the shift reflected changes in the diamond market and was underpinned by data-driven analysis rather than speculation, noting that "Botswana remains underexplored for many commodities, despite its exceptional mining code, political stability, and extensive geological database."

A key development was the group's collaboration with Planetary AI, which applied semantic artificial intelligence to more than two decades of geological data.

The programme identified seven previously unrecognised kimberlite targets and generated 11 critical metals targets, mainly copper, as well as nickel, platinum group metals, zinc-silver and gold prospects.

Teeling said the initiative demonstrated that "Botswana Diamonds is becoming a modern exploration business - leveraging technology, innovation, and decades of knowledge to unlock new value."

Following the AI analysis, the company submitted eight prospecting licence applications covering 6,550 square kilometres in Botswana, targeting copper and other critical minerals, and said it had also been granted four new diamond prospecting licences over high-priority kimberlite targets, including the Jwaneng South-West zone.

Legacy assets such as the KX36 kimberlite resource and Maibwe were described as preserved and enhanced, with data archives modernised to support further AI-led exploration.

In South Africa, Botswana Diamonds secured its first mining permit at the Thorny River project, where independent assessments suggest a small open-pit operation could generate early cash flow, although the company said current industry conditions were likely to delay commercial production.

Additional projects at Marsfontein and Reivilo were also cited as providing further optionality.

Teeling said the group had maintained financial discipline while expanding its exploration footprint, and entered the new financial year with momentum, highlighting exposure to commodities linked to global decarbonisation and a diversified exploration pipeline.

"We believe that the work completed this year lays the foundation for significant value creation in the medium term," he concluded.

At 0809 GMT, shares in Botswana Diamonds were down 3.75% at 0.23p.

Reporting by Josh White for Sharecast.com.