Companies: DWY   

She’s one of the few women leaders in mining, but Melissa Sturgess is showing the boys how it’s done by spearheading an ambitious acquisitions programme at Dwkya Diamonds

Diamonds, in whatever guise, are very glamorous, and AIM-listed Dwyka Diamonds knows first-hand the perennial appeal of these classic gems, having seen strong sales this year from production at its Nooitgedacht mine in South Africa, including a single 54-carat diamond that fetched $360,000 and a 18 carat stone sold for $130,000.

Melissa Sturgess is the go-getting executive chairman driving Dwyka’s expansion, in particular the acquisition in mid-2005 of three hard rock diamond mines
in the Kimberley region: Blaauwbosch, Newlands and New Elands. Add that to Dwyka’s high-profile partnership with De Beers, including a deal to re-treat diamond tailings from De Beers’ Kimberley mines, and 2006 looks set to be a bumper year.

‘If you’d have told me when I was growing up that one day I’d be head of an international mining business, I wouldn’t have believed you!’ Sturgess laughs. ‘But I wouldn’t change how it’s worked out. I love the thrill of making deals and I guess that’s evident from the company’s progress to date. It’s the creative aspect I most enjoy, working to ensure all sides of a deal are happy with it – that’s the challenge.’

A meeting of mines and minds
Thirty-nine-year-old Sturgess co-founded Dwyka with Ed Nealon, formerly of Aquarius Platinum. The pair met when Sturgess was providing management consultancy and capital-raising services for junior-listed mining companies in Australia, including Aquarius. Having attended the University of Western Australia and completed her MBA in the early 90s, Perth-born Sturgess had no particular career dreams but says she was, ‘a self-starter and keen to do something entrepreneurial. Ed was a great mentor and I learnt a lot hanging on to his coat tails in the early days.’

Initially non-executive director, Sturgess took over as Dwyka’s CEO in July 2003 at a turbulent time during the overhaul of production at its Nooitgedacht mine. Dwyka’s share price was languishing at 10p, a drop from 40p at the 2001 IPO. ‘I felt it was important to step up to the plate and take on more responsibility for driving the company forward,’ she says.

Since then, she’s championed a deliberate strategy of prioritising near-term revenue from increased diamond production rather than exploration opportunities. This approach has provided a firm cash base for future exploration and saw the shares recover to a high of 41p in January 2005, though they currently hover at 28p. ‘Overseeing a shareprice increase is one of the achievements of which I’m most proud,’ says Sturgess, now Dwyka’s executive chairman.

Recent mine acquisitions, funded from the company’s cash reserves, are expected to begin generating revenue from early 2006. ‘We’re one of the few junior-listed mining companies building an earnings-based operation; most others are focusing on big exploration plays,’ she adds.

A girl’s best friend
Like many business chiefs, Sturgess finds that the lifestyle associated with running an international mining operation can be challenging, but says she’s not making huge sacrifices. ‘There’s great a deal of travelling,’ she confirms, ‘and many hours spent in airport lounges, with my time split three ways between South Africa, Australia and the UK. But I do see my husband and ten-year-old son in Australia quite a lot. This industry also has a community feel about it, so you’re always bumping into people you know in different places around the world.’

While women lead a few of the global mining houses, Sturgess is the only female figurehead of a junior-listed mining company. ‘Gender is important, but I view it as just another issue like any other to deal with,’ she says. ‘I don’t let it pervade everything, but it is obviously in the mix and I’m happy to acknowledge that. Sometimes being the only woman in this game can be an advantage – people certainly remember me!’

Dwyka Resources	AIM	£26.87m	14.25p	1.25p
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Dwyka moots new expansion			06/09/2007
Gem groups strike £9m deal			21/08/2007
Robert Tyerman’s Exploration Insights			09/02/2007
Dwyka goes for nickel			25/01/2007
CEO Focus by Sally Giles			06/12/2005