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City File: Dia Met and Lytton Minerals

Saturday 16 October 1993 23:02 BST
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AMONG the victims of the great gold ramp earlier this year were Dia Met and Lytton Minerals, two of the smaller companies in the diamond rush in the Canadian Arctic. This is no pipe-dream, for it already involves RTZ, De Beers and Dia Met's backer, the Australian mining giant BHP. First results were highly promising but the gold-share rush cooled enthusiasm.

Even now, warns Roger Chaplin of brokers T Hoare, the shares are not for the timid. Yet, he says,Dia Met has a 95 per cent chance of establishing a profitable mine. Its shares have only fallen by Cdollars 16 ( pounds 7) to Cdollars 50, while the smaller and chancier Lytton has slumped from Cdollars 7 to around Cdollars 4. Yet Lytton has a stake in 12 million acres and looks set to be the stuff of which market legends are made.

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