MENU

Rio diamond fetches $2 million

Rio Tinto’s (ASX: RIO) Argyle diamond mine in Western Australia has produced a number of new records for the miner, including the sale of a 1.56 carat fancy red diamond worth $2 million at its annual tender.

The 64 red, pink and blue diamonds were bought by buyers from all around the globe. Rio’s diamonds managing director Jean-Marc Lieberherr said, “We are delighted with the results for the 2013 tender collection which are a reflection of their rarity, provenance and global reach.”

Demand for diamonds is expected to increase modestly in coming years thanks to a rising middle class, particularly throughout Asia. “Both established and emerging markets were well represented in the winning bids,” Rio said. All 64 diamonds sold above their estimated tender prices.

Despite the demand for diamonds, Rio’s plans to sell its business were scrapped after it failed to attract suitors. Rio’s diamond business posted $192 million in underlying earnings for the six months to June 30, 2013, thanks to higher prices, and the company’s $2.2 billion underground mine at Argyle is expected to produce up to 20 million carats per year and provide ongoing earnings until 2020.

Interested in our #1 dividend paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading


Motley Fool contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.