JOHANNESBURG (miningweekly.com) – Natural resources company Brazil Minerals' commercial strategy of increasing its percentage of polished diamonds sold as opposed to rough diamonds was paying major dividends, as evidenced by the creation of new sales channels and sales in Brazil and the US, stock market research firm Goldman Small Cap Research has said.
“The company’s gross margin reached 69% in the third quarter of 2014 and recent tactical and strategic moves ensure future operational gains.
"In fact, Brazil Minerals' initial goal is to become the biggest diamond company in Latin America in both revenues and profits,” outlined analyst Rob Goldman in a research note on Brazil Minerals.
The company’s primary holding was its 100%-owned Mineração Duas Barras (MDB), a Brazilian producer located in the state of Minas Gerais, which mined conflict-free diamonds and gold, and sold rough and polished diamonds and 96%-purity gold.
MDB had a fully operational mining concession and the permit to export its production of rough and polished diamonds.
Additionally, the company held 100% ownership of the mineral rights for a 24 700-acre area with a known presence of gold and copper in the state of Amazonas, Brazil and an option to acquire up to a 75% ownership interest in a titanium, vanadium and iron project in the state of Piauí, Brazil.