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Not sure that the numbers were all that strong, Bonkers.
Bit of a contrast to Rio Tinto's numbers eh.
Going forward, due to the very steep open pit mining slope angles, they will need to plan to go underground soon, think a feasibility is underway this year. Shocking rise in costs but not totally a surprise in this inflationary environment. Not sure where the SP may end up at present, staying out for now.
Crunching numbers it does look bit bleak going forward with such a significant increase in costs and avg. carat costs circa $1,700, taking mid-points of guidance and assuming units are in LSL in RNS (15 to 1 USD):
Operating Costs per tonne: $23 x 5.7mt = $129.2m
Waste Costs: $4.2 x 11mt = $46.6m
Royalties: $17.5m
Corporate Expenses: $10m
Finance Costs: $4m
Total: $207.3m
Compared to Revenue of $1,700/carat x 114,000 = $194m
If you're tracking Cashflow, you would also have to take into account Capex ($19-23m), for Profit/Loss D&A ($9m). It looks like the trend of continued decreases in Net Cash will continue and accelerate.
Although great start to quarter for large stones with $13.9m sales already, I don't see this plugging the gap unless they can maintain such a trend in finding large stones and with guidance maintained by GEMD, we can only go on this for now.
Over reaction
NICE cash pile following post period big stone sales $13.9
Reduce capex
See dividend maintained and profit
A few more big ones will always help buying more now
That was painful, may look at an entry long term hold closer to 30p...
Morning.
Thanks God for stop losses eh as I overslept today :)
A cautionary tale perhaps re inflated costs impacting earnings - that's going to be the flavour of pretty much everyone's number everywhere else for the forseeable.
Still a long way down at 40p though considering they blew a million quid buying their own shares at 60p.
Dividend and buybacks can explain $5m of that reduction in Net Cash... The rest could be mixture of what you mention
Net cash fell by around $9million in the period, is that due to higher costs and a slightly lower diamond price?
Costs up by 24m…
Three diamonds greater than 100 carats (244.34, 127.58 and 124.65 carats) were recovered during the Period, which were sold in the first tender after Period end for US$13.9 million.
This results in a big jump in net cash!
Fingers crossed - I've taken a few ahead of tomorrow's numbers which presumably will be strong.
Afternoon.
Looking forward to next week's H1 trading update - diamonds have certainly had a good 2022 so far - interesting chart:
https://twitter.com/bonker_99/status/1558075892060004352?s=20&t=x0Qs5h43HMYuBAL4KOj9gA
Just shows how much the pound fell in June. Wonder if that’s the ‘common person’ fault as well :-(
A re-calc I think coverting $s to £s
Got a small div payment today from GEMD on top of the payment I received in June. About 10% of the original dividend payment. Anyone know what this is about?
Looks like the MMs read this board lol
Results soon, it will get going in the run up I expect.
Secondly, look at the spread. The market makers are putting off anyone trading or buying by making risk mgmt v difficult. (I hold from 42p). It's deliberate.
This company just as well go private no one seems interested in trading shares
Great results from Rio Tinto for the first half
http://www.diamonds.net/News/NewsItem.aspx?ArticleID=68913&ArticleTitle=Strong+Prices+Drive+Rio+Tinto+Profit+Surge
Could do with a buyer pushing it through resistance and upto 50p, won't take much buying to do that.
Currently sat on 3/4 MC in cash and exceptional stones. By by measure it is severely undervalued.
Market makers must love this drip feed of shares, clearly all going to be sold higher on the run in to what will be very strong q2 results.
Really does beggar belief what people do with their shares at times.