MOUNTAIN province diamonds (MPD), an exploration company backed by Dermot Desmond, has had encouraging results from an extensive pre-feasibility study of its mining interests in Canada. It now expects the project to go ahead.

The study centred on the Gahcho Kue project, a joint venture with De Beers Canada, a subsidiary of the global mining conglomerate. De Beers has the right to earn up to a 60% interest in the 250,000-acre prospect by taking it to commercial production. The C$25m (€17.1m) pre-feasibility study was regarded as a key component of any decision to give the project the green light.

Mountain Province Diamond’s share price spiked from C$2.15 to C$2.79 last week before settling back at C$2. Jan Vandersande, its president and chief executive, attributed the fall to a bout of profit-taking. De Beers owns 51% of the project and Mountain Province Diamonds has a 41% stake. The company also has an option on gold-mining prospects in Finland. Desmond owns 28% of the equity, which makes the stock worth following.

Take profit

SHAREHOLDERS in Amvescap, the Anglo-American fund manager, are used to bad news, with the American half of the group fined by regulators and suffering significant outflows of funds.

On Wednesday came a shaft of light with a potential offer from CI Financial, a Canadian rival. Amvescap was the only riser in the FTSE 100 on Thursday, the day of the terrorist attacks on London. CI made an offer for Aim Trimark, Amvescap’s successful Canadian operation, and was rebuffed, only to come back with a spur-of-the-moment proposal for the whole company and to be rejected again.

Amvescap’s management reasoned that if it let the Canadian arm go, the whole group would be broken up. The bottom line is that despite the rocketing share price — it finished the week at 419½p, up 81½p — there is at present no bid for Amvescap on the table. The firm faces an uncertain future, with no solid bids on the table and management opposed to a break-up. Take the profits now.