This Could Be The Hottest Mining Stock Of 2018 / Commodities / Metals & Mining

In the forests of Colombia, a record-breaking discovery was made.

A 1759-caratemerald was uncovered from the Coscuez mine. It is now part of the collectionof the Banco Nazionale of Columbia. The massive jewel could be worth as much as$17 million, based on current per-carat estimates.

And the mine where it was found has only been partially excavated. Whichmeans there could be hundreds, maybe thousands more emeralds locked away underthe ground...

The timing couldn’t be better for the company that just took this provenmine over.

That’s because the increase in demand for colored gems is outpacing theincrease for diamonds.  As demand forcolored gems surges, prices for rubies, emeralds and sapphires have shot up.Prices have already increased by over100% in the last decade.

As new supplies from the world’s top colored gem mines come on line tomeet demand, the market could grow by five times, from $2 billion to $10 billionin the coming decade.

                                                                                                                           
That’s excellent news for Fura Gems (TSX.V:FURA)a rising starin the world of colored gemstones and owner of the Coscuez mine.

The company has assets in Colombia and Mozambique, a superb managementteam with a great track record for success, and growing opportunities to takeadvantage of demand in colored gemstones.

Another “Guinness sized” find would make Fura Gems internationalnews.  Here’s why investors are taking aserious look at Fura Gems(TSX.V:FURA) now... before theyare a well known producer of colored gems”:

#1 The Smart Money isFlooding in to Colored Gems: What People Don’t Know About Diamonds

The diamond market grew thanks to organization. Large companies like DeBeers set up integrated operations to grow the sector, minimizing costs andlinking supply to demand. Diamonds also benefitted from a straight-forwardvaluation system.

Demand for diamonds is historically a little inflated. The popularslogan “A Diamond is Forever” was invented by De Beers in the 1940s.

As a result of such developments, “diamond money” has always surpassed“colored gems” money. From a global market worth $23 billion, diamonds accountfor $13-14 billion and jade $3-6 billion. Colored gems make up only $1.5-2.5billion.

But that could be about to change. The idea that diamonds are worth morethan other gems is a myth. As demand for diamonds declines, colored gems arepoised to takeover more of the market.

Diamonds can be manufactured, raising questions about their value. Many diamondsthat are mined come from “blood diamond” mines in Sub-Saharan Africa andelsewhere, attracting international attention placing pressure on diamonddistributors.

De Beers has faced two straight cycles of decliningsales. Signs are pointing to a continue slump in the diamond market, astastes move toother colored gems.

So, as diamonds falter, colored gemstones are ready to pick up theslack.

#2 Colored GemstoneInternational Demand is Rising

Colored gems are rising in popularity. Throughout the world, they areprized for their beauty, sophistication and style.

Outside of oldermarkets in the United States and Europe, colored gemstones have become wildlypopular in China, India and South Asia.

In China, consumption of jewelry doubled between 2009 and2014, with colored gems rising in popularity even as diamonds held most of themarket.

From 2006 to 2013, price increases of rubies and sapphires out-paceddiamonds. Marketers noted the rising interest in colored stones, and prices havebeen rising rapidly.

A report from marketer GemRock Auctions shows that demand for colored stones, particularly emeralds, hasbeen rising while demand for diamonds has largely stagnated.

Many rubies sell for more than white diamonds at auction, and prices foremeralds and other colored gems have risen by 100% inthe last decade, according to a report from the Natural ResourceGovernance Institute.

While the market for colored gemstone sales is only $1.5-2.5 billion,with prices rising and demand increasing, that figure could increase by 500% inthe next decade, as colored gems displace diamonds.

But the colored gems industry is being held back. It’s a fragmented,divided industry with 90% of mining operations in the hands ofsmall-scale, local concerns.

The industry is under-capitalized and suffers from a lack oftechnological expertise and investment. Huge amounts of money are squanderedthrough corruption, graft and mismanagement.

So far, no company has emerged as the “De Beers of colored gemstones.”If the “diamond playbook” were applied to emeralds, rubies and sapphires, costscould be slashed and full advantage taken of the market opportunities forcolored stones.

Fura Gems (TSX.V:FURA) is looking to seizethat opportunity, and it has a management team ready to take on the challenge.

#3 A Team That With aHistory of Billion Dollar Gem Projects

The team at Fura Gems (TSX.V:FURA) is aiming to put the“diamond playbook” to the test.

CEO Dev Shetty came toFura from Gemfields Plc. He joined Gemfields when the country wasstruggling, hemorrhaging money as profits sagged and debt piled up.

Shetty turnedGemfields around, bringing the company from a $201 million net lossin 2009. By 2015 the company had a market valuation of $525 million.

Shetty was instrumental in bringingGemfields into Colombia and Ethiopia. He also helped thecompany develop its mine in Zambia, believed to be the world’s largest sourceof emeralds.

Shetty’s predecessor JamieLalinde continues to sit on the board, offering advice to management from histwenty years of banking experience. Lalinde has worked stints at ChaseManhattan, Merril Lynch and Citibank, as well as years in the Mexican andColombian mining sector.

Shetty is backed by a strong advisory team with great namerecognition. On the advisory board is world-renowned broadcaster Larry King,legendary investor Jim Rogers and international businessman Michael Spektor.

#4 A $50 MillionCompany With Growth Potential

Fura Gems (TSX.V:FURA) possesses immensecapacity for future growth. From its current $38 million market cap, Fura couldbecome a much bigger company if the assets it’s acquired prove out.

The jewel in Fura’s crown is the Coscuez mine, which it justacquired in a $10 million deal. The deal gives Fura a controlling stake on aplot of 46 hectares, an area that has been consistently producing qualityemeralds for over four hundred years.

It’s where the massive 1759-carat Guinness Emerald, which alone could beworth as much as $17 million, was discovered. And Coscuez is only partiallyexplored, meaning there could be an inventory of emeralds locked away in itsorre.

A well-cut emerald can be worth as much as $9,800 per carat. One 18-carat emeraldring sold at auction in June 2017 for $5.5million!

With a huge reservoir of ore waiting to be dug up, the Coscuez mine,which once supplied 77% ofthe emeralds in all of Colombia, could again be an excellentsource of emeralds. Colombia itself has produced only about 20% of its totalemerald reserves.

Getting hard figures for colored gemstones can be tricky, but with a $10million initial investment and applying modern mining techniques, Fura ishoping to be able to duplicate Gemfields’ experience in Mozambique: Gemfieldsearned $225million in gem sales from seven auctions, and that’s just in the first fiveyears.

That means that Fura, with good properties and excellent know-how, couldgrow significantly... especially if they luck into a major find that makesinternational headlines.

Fura also has aninterest in Mozambique rubies, and has set itssights on the Indian market, the third largest jewelry consumer on earth. Thecompany is “actively looking for opportunities,” according to Shetty

#5 Fura Gems Could BeThe Mining Sector’s Play of 2018

The age of diamonds has peaked, and Fura Gems (TSX.V:FURA) is aiming to take thediamonds playbook and applying it to the growing colored gemstones market.

With the famed Coscuez mine, the dynamic leadership of Dev Shetty andgrowing international interest in colored gems, Fura is working to build uponits small market cap.

Just compare it to what Shetty was able to do with Gemfields: he took acompany that was losing $200 million a year, and within five years brought itto a market valuation of $525 million.

And with the Guinness Emerald as its poster-boy, there’s a chance FuraGems will soon be front-page news. The Guinness Emerald alone could be worth$17 million. Imagine if the same Coscuez mine had another emerald like that.
Savvy investors willknow to pay attention to Fura Gems (TSX.V:FURA) now, before the gemrush really gets going.

Other major miners:

By. MeredithTaylor

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This news releasecontains forward-looking information which is subject to a variety of risks anduncertainties and other factors that could cause actual events or results todiffer from those projected in the forward-looking statements.  Forward looking statements in this releaseinclude that Fura Gems can deploy technical expertise to tap into Colombian emeralds; that gemstones will be as much indemand in future as currently expected; that Fura can fulfill all itsobligations to exercise its property options; that Fura’s property can achievemining success for quality gemstones; that Fura has a process that can convertlow quality stones into high value gemstones; that Fura will obtain miningpermits on its properties; that the gems when produced will be high quality;that tastes will move away from diamonds to colored gems; that bulk samplingand production will begin as scheduled; that Fura will be able to increaseproduction through modern methods and increase the value of its assets throughbranding and auction sales; and that Fura will be able to carry out itsexpansion and other business plans. These forward-looking statements aresubject to a variety of risks and uncertainties and other factors that couldcause actual events or results to differ materially from those projected in theforward-looking information. Risks that could change or prevent these statements from coming tofruition include that the Company may not be able to finance its acquisitions,expansion or other business plans, aspects or all of the properties’development may not be successful, mining of the gems may not be costeffective, changing costs for mining and processing; increased capital costs;marketing plans may not work out as well as expected; the timing and content ofwork programs may change; geological interpretations and technological resultsbased on current data that may change with more detailed information ortesting; potential process methods and mineral recoveries assumptions based onlimited test work with further work may not be viable; additional high valuegem properties may not be available for Fura to acquire, or Fura may not beable to afford them; competitors may offer better quality or better marketingstrategies; the availability of  labour,equipment and markets for the products produced; and despite the currentexpected viability of its projects, that the gems cannot be economicallyproduced on its properties, or that the required permits to build and operatethe envisaged mines cannot be obtained. The forward-looking informationcontained herein is given as of the date hereof and the Company assumes noresponsibility to update or revise such information to reflect new events orcircumstances, except as required by law..

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