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January 3rd, 2022 | 08:50 CET

BYD, Diamcor, LVMH - Impressive growth

  • Diamonds
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Despite the Corona pandemic, travel bans and closed stores due to several lockdowns, demand for luxury goods continues unabated. Now add rising inflation to the mix. Tangible assets such as shares, precious metals and jewelry are the best protection against currency devaluation. The purchase of diamonds is growing in popularity. The choice of listed companies on the stock exchange is small.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , Diamcor Mining Inc. | CA2525312070 , LVMH EO 0_3 | FR0000121014

Table of contents:

    Diamcor - Thick in business

    High demand for diamonds currently comes from India, China and the Arab countries. In contrast, the supply is very limited, many mines are already fully exploited, and new mineral resources are no longer found to the extent required. A real gem is owned by the junior exploration company Diamcor with a well-established production operation in South Africa and extensive experience in supplying the world market with rough diamonds.

    In 2011, the Canadians acquired the Krone-Endora at Venetia project from De Beers, consisting of mining rights to Krone 104 and Endora 66 farms, representing a combined area of approximately 5,888 hectares and directly adjacent to De Beers' flagship Venetia diamond mine in South Africa. The deposits at Krone-Endora are in two layers with a maximum total depth of approximately 15m from surface to bedrock, providing very low-cost mining with the potential for near-term diamond production from a known high-quality source. Krone-Endora also benefits from the infrastructure and services already developed due to its location adjacent to the Venetia Mine.

    Throughout 2021, Diamcor has been able to increase processing volumes steadily. It was recently announced that an additional 2,925.66 carats of rough diamonds were mined and sold from quarry processing. That is an increase of about 175.66 carats compared to the approximately 2,750 carats the Company announced it would supply, tender and sell on November 18, 2021. It brings the total carats of rough diamonds delivered, tendered and sold in the current quarter to 5,442.57 carats, an increase of 25% compared to sales in the previous quarter. The sale of the 5,442.57 carats generated gross proceeds of USD 1,074,780.69, resulting in a combined average price of USD 197.48 per carat for the period.

    Dean Taylor, CEO of Diamcor, sees the Company continuing on a good path, "We are pleased with the increase in total rough diamonds tendered and sold this quarter. Our focus remains on optimizing processing volumes and recoveries based on Phase 1 upgrades for the remainder of December and the upcoming quarter. We remain confident that the positive impact of these upgrades will continue to be seen in future quarters."

    LVMH - Further in demand

    When looking for a luxury goods company, the first thing that comes to everyone's mind is the French LVMH Group. Logically, the Paris-based Company offers the full range from champagne to jewelry to fine fragrance. Over 70 brands such as Moet & Chandon, Veuve Cliquot, Louis Vuitton, and Tiffany are part of the portfolio sold globally in 5,000 stores in 80 countries.

    Despite the pandemic and travel restrictions, the industry leader's growth continues unabated. The sales figures for the third quarter showed this impressively. Compared with the first nine months of 2020, sales, excluding acquisitions, rose by 40% to around EUR 44 billion. This represents an increase of more than 10% compared with the pre-Corona period of 2019.

    As a pre-Christmas gift, the French group announced the launch of a share buyback program. The order was given to buy own shares for a maximum of EUR 300 million between December 21, 2021, and February 15, 2022. The chart speaks a clear language. After a short setback, the share is about to reach an all-time high. When it comes to investing in luxury, there is no getting around LVMH.

    BYD - Han is running

    Despite the regulation mania about Chinese stocks, the Chinese electric car company has performed valiantly. Currently, the BYD share is consolidating in the area of the EUR 30 mark. Fundamentally, however, the signs continue to point to growth and expansion. This time, delivery is going to the Asian state of Laos. The customer of the electric sedan Han EV is none other than the Prime Minister of the Democratic People's Republic. In November, BYD already gave the go-ahead for deliveries to Latin America and the Caribbean.

    In total, the Warren Buffett-backed company is celebrating the delivery of 150,000 Han, the first model to be equipped with the Blade battery. The Han was launched in China in July 2020, first as an all-electric version, then a plug-in hybrid version was added a month later. Since then, more than 140,000 vehicles have been sold by the end of November. With more than 40,000 in 2020 and more than 100,000 in 2021.

    The luxury goods sector is up and running, as seen in the impressive sales figures of industry leader LVMH. Diamcor's rising auction prices also indicate increased demand in the diamond market. BYD celebrates its anniversary. In 2022, the growth curve should continue to point upwards as long as sufficient chips are available.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author

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