Botswana Diamonds chairman John Teeling has blamed selling of the company’s stock by speculators for the fall in its share price.

The Botswana Diamonds share price slumped from 7 pence sterling at the beginning of February to 4.25p yesterday.

The company grew out of the takeover of part of African Diamonds by Lucara in a paper-for-paper deal.

Hedge funds bought African Diamonds shares in London at 40p to get Lucara shares at the equivalent of 73 Canadian cents, at a point when that stock was worth 95-120 Canadian cents. As part of the deal, Lucara shareholders received shares in the two companies.