AIM-quoted gold and diamonds play BDI Mining says independent consultant WWW International has put a market value of $285 per carat on the first parcel of 3,285 carats from its Cempaka venture in Indonesia, an increase of 52 per cent on the $187 a carat price achieved three years ago when the company tendered 4,656 carats from bulk testing. Robert Tyerman reports.

Richard Wake Walker of WWW International says 'the average price of this parcel is well above world average prices and demonstrates the high quality of Indonesia's rough diamond production'. Lee Spencer, managing director of Canada-based BDI, claims 'the current premium in the value of the Cempaka diamonds has the potential to more than double operating margins and add an additional $6 million (£3.1 million) a year to Cempaka cashflow'.

The company's management warns that diamond prices fluctuate and that future sales may not always achieve this value. Still, at 29.5p, shares in Cempaka, which is also looking for gold at Woodlark Island in Papua New Guinea, should perform at least as well as other confirmed gem/gold plays in the sector.