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It's quite plausible that Gem could unearth a diamond with greater value than the current mkt cap. It can't be too far off until they get a biggie.
So not going underground now, and mine life in current form 15 years. Wait for diamonds to recover price then bingo...
Dont forget they are sat holding 18m of diamonds to sell...
Be priced in now?
This could be one hell of a recovery play for 2024..
Gla.
No fund raise requirement here, they have plenty of quality diamonds to sell when prices rise
I should have said, could be the govt take it out. National asset blah blah....
The financing issues still exist if its take private, so not sure what that solves.Ask yourself who would want to take this on in the current diamond market with the potential of massive investment required at current level of interest rates.
IMO this will bounce around at this level until there is a clear pick up in diamond prices. Might be time to get back in then if you believe a take out or take over is possible.
PDL down again too. got a little in that but nothing in GEMD.
Going private imo...for a song...
9p bid. this looks toast. where is sp going? no support under here.
Bid into the 9s now after a fair bit of selling pressure....looking grim...
You forgot capex. They have been pushing it back and at some point that wont work anymore. Secondly at some point they will need to go underground. See the continued mention of slope steepening. They mentioned a feasibility study being done a while back on going underground and since then it's gone quiet. Capex will explode at that point and hit can they fund it? Answers on a postcard to ....
37m utilised,13.4m used for purchase, 23.5m outstanding, 16m of that in cash, 6m burnt, net debt end period 21.3m. In January paid 9.2m from cash of 16m so current net debt now 30.5m, cash of 6.8m, undrawn facilities of 45m?
Anyone know total cost of the buyout?
Of the 30.5m, net debt 22.6m from purchase so 8m from operating losses? Losing about 8m pa? If so no need for capital raise soon maybe just borrow and wait out the diamond market downturn.
It makes you wonder where all the money has gone over the years. Shareholders have been utterly shafted. I'm glad I sold the bulk in the 50's for a small profit. It's looking bleak having said that at these levels the major shareholders will probably take it private as it's not going to cost much.
Yes cash call by the spring imo, aweful update, burning LOADS of cash, no real surprise, single figure SP coming, directors continue to milk it dry, a shambles
Yes and drawing the 50m wont count towards their net debt. Jeez. If you fancy leading me some money I dont have to pay back then I'm all ears...
Don't be daft... They have an undrawn facility of 50m!!
50m less rev than last year, looks like 25m negative FCF even with 5m capex deferred. Diamond prices still under pressure and quality of recovery declining. Yikes!
Surely can't be long before capital raise is required.
Tomorrow, first 100k buy I’ve seen in a while.
Gla.
Heading to single digits??
Let us know when you've worked it out.
Hello all investors here, im trying to identify risks and scenarios and would appreciate any input. IMO Gem is undervalued relative to net assets and average annual profit over previous 5 year period. I assume the current sp to reflect uncertain outlook as a result of low diamond prices and high possibly continuously increasing operating costs. Gem is currently unprofitable though i understand they have credit facility around 60m undrawn which i assume they'll utilise and thus can survive unprofitability for a couple of years. Diamond prices are apparently low due to overstocking , what other factor's are at play, what price trend is expected and time estimates for price recovery? Regarding operating costs the continued rise in o p costs H1 was negative, what are your expectations as to a further rise or decline in such? Obvious negative catalysts rising oil thus op costs due to likely escalation, adversely current valuations make takeover bids possible. Opinions please risks and scenario's you've identified?
They need these big finds just to survive nowadays, it doesn't affect the SP. The markets now they need to go underground very soon and it will cost?????
How much of the selling price will end up going to shareholders? Look at past years when the market and run of finds and see the results. The cash seems to disappear into the ether. The market knows this, hence no SP movement...
Yep, about another 2 years I'd say...
Could find a diamond potentially worth more than its market cap, and end up down on the day!!
More patience required.
Gla.