Investment Case

Kennady Diamonds, through its interest in the Kennady North project, is in an exceptionally advantageous position. Currently, there are only 25 primary diamond mines in operation globally. In the past 20 years, only 12 significant new diamond deposits have been discovered, leading to a globally supply deficit. The Kennady North project has three known kimberlites and is exceptionally well placed to discover additional new kimberlites.

Looming Diamond Shortage

The world is facing a looming diamond shortage as global demand increasingly outstrips supply. This has led to a sharp rise in diamond prices.

Today, demand and supply are largely in balance at approximately US$12.5 billion annually. However, as a result of diminishing supply and strong double-digit demand growth in Asia, diamond prices are projected to double within the next 10 years.

Powerful New Markets

Despite investments of hundreds of millions of dollars in global exploration, the diamond industry has failed to discover sufficient commercial diamond deposits to replace existing finite mines.

Consequently, diamond production is projected, at best, to remain flat for at least the next five years. The price support being brought on by this shortage is being compounded by the emergence of powerful new markets with strong appetites for diamonds. The U.S. currently accounts for 50% of worldwide diamond sales. However, the largest demand increases are in China and India, which have fast-growing middle classes, as well as the Middle East.