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Despite proclamations to the contrary, there really seems to be no planning of contingency with this BoD. It has become almost routine now that they require more cash to complete the plant upgrade and mine optimisation. Whilst issues occur that management can't necessarily predict, it just seems that very little is actually under control and the BoD keep on requiring more funds to see this project through to completion. I can't help but agree that the tie-in with Teichmann seems to indicate a desire to take this private and then they can carry on at their own leisure (and profit). It's a shame because the numbers (i.e. production / revenue versus costs) seem good. You just have to wonder where it is all going for them to keep on requiring more cash.
Bmeister
I think that you have hit the nail on the head. I would anticipate a takeover bid in the next few months. Question is at what price? The long-standing shareholders who have seen their share values staffed up the wall will certainly not be happy with £1 offer. Fun & games ahead!
Agree ops update looks very good and price per carat very strong. Not a fan of these financing arrangements but pleased it's Teichmann as they already have a significant shareholding so I don't believe they will sell any of the shares. I think eventually they will make a takeover offer but hopefully we will be looking at over 100p by then. Still crazy cheap given the revenue will be $16m (or more if they maintain current price per carat) and a profit of $8m.
Ops update looks promising
Omg. I hate these financing arrangements. Will they dump or aim to take this private.
But...
https://observer.com/2020/10/de-beers-open-us-lab-diamond-factory-oregon-mass-production/
https://www.forbes.com/sites/pamdanziger/2021/05/06/lab-grown-diamonds-gain-even-more-credibility-with-pandora-and-diamond-foundry-news/
The Millennials was cheaper and greener bling.
Zero interest = a long wait for a rise in the SP but when the herd arrive it's got to hit 150p!
So in terms of q1 numbers 4004 carats sold at an average of $446
4 of which sold for $381k
In which case total revenue - 4004 x 446 = $1.785784m total
discounting the large stones would give $1.404784m for 4000 Carats = $351 per (smaller stone) carat
In short, when the new mine becomes operational in July with an all in cost of ~$200/carat, it looks like there's a decent amount of profit even for the smaller stones.
Hard to see how the sp doesn't recover over the coming months !?
Nice to see the positive results and increase in diamond prices generally
Now rainy season is out the way, kind of bodes well for Q2 even with a slightly frustrating month/two month delay in plant expansion. That said I don't think I've ever seen a company complete a project at the time they first expect an this is no exception. July it is..
Would be interesting to know what the additions/ancillaries are to the plant, re-crushing circuit, covers, national grid link etc on the ground updates would be useful
Looking positive for future returns!
The RNS is good news, all bar the delay to completion of the plant which, by the sounds of it will result in a more complete job anyway.
Just by way of demonstrating the estimated value here from the results presented for Q1:
Value of production Q1: 4004 carats x US$446 = US$ 1,785,784
Cost of production (using US$ 220 / carat, previously published): 4004 x US$ 220 = 880,880
Value of 4 large diamond sales = US$ 381,000 assumed production cost in with the 4004.
Total revenue from production (before tax, debt repayments etc. etc. ) = US$1,285,904. GBP = £925,111.
(Gross) Value per share: 7p
Very pleased with Q1 results this morning and better than I expected. With the increase in carats produced and average selling price I make it that revenue has doubled to $1.6m which is even more impressive when you consider the whole of January they were unable to produce because of the unusually poor weather. Looking very positive for the rest of the year and still can't believe how low the mcap is considering it is one of the top 10 highest carat mines in the world
Good point SuperRoty!
On the Q1 sales figures.... ;-(
DW75
Don't believe posts like that on the board. Have you ever turned up at a mine and asked for a tour. I think security would tell you where to go.
A lot of posts are just hype hoping to get some sp movement.
Why don't they damn release that update? Of all the past excuses, there is another easy one this time for the board to show of them being unable to make production to their expectation i.e. 29 days of production halt from heavy rainfall. There is no need for more excuses to look for to put on that report.
It’s a while since I’ve been on here. What’s happened to the investor called Connie? I believe she was heavily invested and had made a few visits to the mine?
If you’re out there have you got any plans to go back out when normality hopefully returns?
Once the company enter a run of good news:
-improved Q1
-further large diamonds & price improvements
- Progress on new process equipment, higher production
- lower costs due to higher process volumes
- more larger diamonds
-grid connection lowering costs further
-cash flow positive
over the coming months, mm will feel more confident in raising the bid as volume increases.
Same goes for the ask for that matter!
Why the huge spread? does any body know?
Spread too wide to deal.gl.
The Spread is too wide.I hold some but will not buy or sell with this Spread.gl.
I agree! Chronically undervalued and so few shares available! £2 by Xmas?
Absolutely matstar, the next few months should see a big switch into profitability and with the new circuit being brought online by end of May we should see some great leaps forward in H2
By the looks of things, Q1 results will be a lot stronger than Q4 for what appears to be a decent recovery play. Add to that a vast increase in productivity over the next few months should move this back to operationally profitable (Q1) to having decent free cash flow.. (Q3) not sure the market sees it yet, but should be an interesting few months ahead
Only if you buy them lol
Are normal share holders going to get any of the shares issued or that I'm wasting my time waiting?!