Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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I know we keep mentioning it but surely vultures will be watching GEMD very closely with this diamond market recovery being so strong? £90m market cap seems crazy but what will it take for a major re-rate....maybe its imminent....fingers crossed
Diamond prices still rising and there is a major shortage of rough supply in the market. Very positive for the rest of 2021 and into 2022.
http://www.idexonline.com/diamond_prices_index
With diamond prices rampant since Q1 and the fact they probably sold the 2 large stones at excellent prices in Q2, plus the carry over from Q1, we should expect excellent price per carat figures with better to come in the 2nd half imo
Average price achieved for the q1 Period was US$1 630 per carat (Q1 2020: US$1 615 per carat).
Getting above $1700 would be great
Cash pile starting to grow $20M +
SP starting to move back towards 70p now, maybe by results day 70p....post results...???
We should be looking at an average sales price of 2k US per carat. This combined with a production increase vs last year would look knockout and as you say, bigger stones to come in the second half.
I very much doubt imo, they do alot of selling on their own sales and third party tender platforms anyway so I doubt that's the reason for the price drop. I think it was purely technical in reason, to fill gaps on the chart.
I feel it could be something to do with the cancelled July sale in Antwerp. Unfortunately I don't think we can definitively tell when this sale was cancelled, but I noticed as cancelled around 10 days ago (on their website). Could be taken as a sign of something gone wrong?
On the other hand i noticed that they already have SH approval at the last AGM to buy back at there own discretion. I would wager that being announced soon. They need to do something to close the price/value gap.
Surely if someone wanted to bid it would be done by now.
I cant see Graff doing it. Why would they want to own a mine? Its a long way from Lesotho to Bond street or 5th Avenue. I can see the logic of being a SH here a they get visibility and insight on the market and specifically the market for big stones but involved with mining operations. Just don't see it.
If Anglo or Rio or some other mining outfit wanted it it would be done by now.
Bids for UK listed companies at all time high due to the ridiculous market valuations I.e GEMD
https://www.thetimes.co.uk/article/9017ebd2-f48a-11eb-a2a3-afea84050239?shareToken=113fb0812f8255aa088ccb3624ccc97a
Well may we should be asking the company these types of question during the analysts conference call at the 6 month results. I usually login live and last time had one of my email messages read out and answered.
There could be quite a few suitors for a bid and the company is clearly undervalued, we all know that. It does seem rather strange for the price to go down on very little trade and no apparent change in operating especially when you consider rising diamond prices. What amazes me is why the sale of Ghaghoo has taken so long. Surely with rising diamond prices and some very large stones coming out of Botswana now is the time to get it up and running again. After all they have spent a huge amount on developing it why let another company have the benefit of it. Maybe this all needs sorting out one way or another before a potential suitor places a bid.
I'm wondering if GEMD have told the MMs they want to buy back shares in the market but only at the best possible price? Who knows, all guess work.
I'm wondering if this is being held back in preparation for an offer.
Aberforth topped up at higher levels than this in the last 3 months. SC have no changes TR1 for best part of a year. And all the other big investors are hanging around or have added and all all are at average prices 20p north of the current SP. Yet with more cash in the bank, resumption of divi and no debt the SP continues to fall.
Over the past days I have been watching the actual buy/sells and comparing with the quoted prices with dummy buys. Its clear that the many of the indicated sells are in fact buys. Yet the price is static or falling.
So 2 possible scenarios. MMs are dripping in previous sell orders from substantial but non noticeable holders or someone wants the average price held back for another reason. I don't think bored PI's are the driver here. Not enough trades.
Just a bit of daydreaming on my part I admit but its not impossible. The long term outlook for prices and the strength on GEMD's main asset is a big value mis-match. Eventually if the market does not re-rate it surely someone will come in, perhaps even take it private?