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A valuable mine which needs in the order of 4 million to kick start operations why are the large share holders going to let it go?
Hi Whogarth, You said "A valuable mine which needs in the order of 4 million to kick start operations" Please can you tell me (or anybody else) this is a valuable mine. The value of the mine is based on the observations made by the former management. In short this is the reason why are the large share holders going to let it go? Sorry whogarth the company has not a got a viable future. DAR-
excellent analysis Dar, We all invested on the basis of management analysis and so did the large investors. No diamonds to date were found.
Not true Einvestein, diamonds were found & sold, some in SA who had first option & some in Holland. DCP was unable to reach full capacity early enough before the flood. I still reckon had PL initiated a crowd funding account offering a 1ct raw diamond gift (not a sale) for every $168 donated, we'd have a 15-20p SP by now.
Too late now though. Update tomorrow or wait until Friday for the dear John notice?
I was being a bit sarcastic Banksman. Someone very knowledgeable claimed we had all invested on the basis of 'management observations' whatever that means.
The management made statements about the "value" of the diamonds that were mined but any diamonds found in South Africa has to be auctioned at Jo'berg diamond exchange (before they leave the country). The valuation of the diamonds was substantially less than the valuation of the company valuation. (however, that was a "distress" valuation. I do not know if the diamonds have been auctioned or in Jo'berg diamond exchange vaults (pending DCP status). I still think the management of DCP is "questionable"... Sorry I can't see a positive outcome. ATB
Apologies Einvestein, seems my sense of humour has evaporated along with my portfolio funds :0)
Hello Banksman, Don't worry about your apparent loss of humour with regards to DCP. Everybody has loss money on DCP. ---- yep a disgrace. Just think --- next time it will be different
There'll be no "next time" for me. For starters I have no money now! Seriously though, this whole debacle has destroyed the (granted, limited) respect I had for South Africa as an investment location; diminished my faith in the London administered AIM and made me question how anyone other than the massive established companies can ever hope to get anywhere. It is clear in my mind that untoward pressure was brought to bear here - the natural phenomena which befell the mine were not insurmountable and yet we are minutes away from administration. Whichever poor sod is last out of Lace, open the taps on the dam and torch anything that will burn please - don't want anything of value left for the scum who will be picking up my investment for peanuts having forced it under...
Banksman, agree with your post & considering barely a large sample (less than 60Ktons) was extracted overall from old upper workings not virgin kimberlite & still exceeded estimates in slump year 2 out of 3 times verified the resource statement. A chain of incidents & bad luck escalated out of proportion & would not be contained without funding contingency to break that chain. Retrace back to the AMCU willfully obstructing remediation & dewatering and the fact that the ANC governments recent despotic attempts to remain in power after 24 odd years of self enrichment rather than governance, has led to many a bondholder running to less risky territory. Early in the year Banksman mentioned the political rut flaring up and admittedly I did not actually think the "monkey" at the helm would actually get rid of the respected finance minister in an attempt to get at the treasury & this single idiotic move (a step too far) makes it very difficult to attract foreign investment! Was meant to head to Durban S.A. for the WEF last week but the group unceremoniously pulled the plug which is unsurprising... I emailed PL on Sunday to suggest as a last resort that perhaps some investment interest could be solicited from players affiliated to Dubai Multi Commodities Centre & Diamond Traders? I've not had a reply as yet.
Hi Valency Do you get responses from PL? and do you think there is still some hope, even at this stage?
Hi Tozerk, yes he replies 99% of the time with the odd exception. As you know I've spent less than a day at home past month & been inundated but emailed PL late afternoon on Sunday. As stated I've not had a reply as yet. Do I think there is still hope? For what it's worth, I think bondholders although recently agreeing to further standstill in terms of interest payments are now running scared after Zuma's ill-fated political ploy. It has scared many investors & bondholders alike and seems that in terms of emerging market bonds, Russia has become a preferred destination over S.A. at present. Says a lot doesn't it? Considering AMCU efforts to obstruct any remediation effort at the mine and recent politics changing S.A. investment climate, I think it's a far cry to be honest and reckon bondholders now prefer out rather than risk further investment & political uncertainty? ATB
Oh dear, we're stuffed then.