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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.
10-15 million.
They won't sell it yet with these prices...
Is that potentially, a $10m diamond?
Clearspot
IMO the co is un-investable of that reason alone (and there are others). GEM doesn't have the cashflow to support future investment therefore debt will be used and then you are into the hell that PDL got themselves into over the past years.
They need a great deal of luck in terms of a run of finding stones like this mornings and a recovery in prices and demand.
In the lap of the gods in other words and all of that before one questions the management incentives and non controlling interests at this company.
IMHO the reason this company is sill listed is to use the listing as a means to fund capital requirements at the expense of shareholders.
With any luck!
Gla.
Wow, that's a big diamond...
Does anyone know when the study into the economics of going underground at the mine will be published?
I recall some comment regarding the end of 2023 for an update. Clearly there would be a risk of a new capital requirement to fund the underground work, perhaps that is what is compressing the SP this year?
But what if it is too expensive to go underground, or if the costings are prohibitive? Too much risk of the unknown here at the moment, IMHO
GEMD appears to have fallen out of investor interest. And not without a good reason, as it has proven to be a terrible investment in recent years. Throughout this period I was waiting for any bad news, but nothing was announced… or rather, it did not exist. As a result, I now expect a share price recovery that could be quite rewarding. Even if the price were still to drop further, it would probably be for a very short time now I think.
Bonker- have a peek at Zioc, been long in the tooth, but think we’re in the end game there, sort of like Mka(I also hold a few there).
As for here, would love to see a continuation of the turnaround, I’ve got a little too deep!!(averaging 15.5p).
Gla
G7 to ban Russian diamonds, announce measures on price cap, assets-sources
Still waiting Stew ........