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Just another $1.9M to spend on buyback
So as I thought the shares go into treasury. How does that help anyone but the board who can give them back to themselves as ‘bonuses’ for good work? At least when Zytronic buy shares back they cancel them.
Q2 better
An exceptional white Type II diamond of 99.36 carats recovered at the Letšeng mine on 5 April 2022.
Worth $5M+ on its own
Share buyback and dividend
Bots deal -perhaps
Cash always mysteriously "disappears" look back through the posts
Not much to talk about there really. My wild price ambitions fell well short. No increase in net cash, was there a tax payment this quarter? I spotted one in Q1 21 but no mention of it this time
Materials sector taking a battering today
Grab a few and bottom draw at 50p.
I would say that it’s acting like they don’t dig up diamonds…
The price today is acting like that is not going to happen tomorrow.
PDL trading update today announced a 37.6% increase in prices for their Q3 (GEMD Q1) v Q2. Hopefully we see something similar in tomorrow's TU. GEMD Q421 prices were around 15% higher than Q121, and if, like PDL, Q122 is 35% higher than Q421, this could mean Q122 prices are 50% higher than Q121. We should see a a big bump to EBITDA and cash flow
https://www.investegate.co.uk/petra-diamonds-ltd--pdl-/prn/trading-update/20220420070000P0E5A/
Happy days 20% rise in a week
Totally agree alpha90, negative comments only because it rising and people have sold out. Been in this for 10 years and always been chasing my average down. Good to it heading up towards my break even price. Started by GEMD when over £2 :-(. Good luck everyone and we deserve this upwards trend… AIMHO
you sold out in March, so hence the negative comments, I agree to an extent with what you are saying, especially as I have been invested for over 6 years, however it may not necessary be a false promise, it may not necessarily, not happen ( share buy back). Perhaps let's keep it positive for those that remain?
GLA
Forward outlook? Dividend in May. Very low debt. Strong demand for diamonds. Sanctions on Alrosa.
I expect slow and steady share rise . This year should be very good for Gemd.
Hi Ragnar GEMD ended the year Dec 31st 2021 with net cash of $20.9m. In mid Dec the share price was hovering around 45p (it closed Dec 17th @ 45p). I think it IS fair to say that they have 'sat on their hands' if they were committed to share buy backs.
It remains to be seen whether they are serious. IMO: probably they will do little or nothing. Probably at the next AGM there will be a motion 'We seek authority for a share buyback' (by the way we give a Flying Wallenda about ordinary shareholders - ha ha)
Daily volume is limited so I'm assuming/hoping the buyback is there to take advantage of any drops rather than steady daily buying. Mopping up the free float is not really positive for the SP beyond the very short term. I don't think its fair to say the board have 'sat on their hands', the company has had a net debt position a number of times over the last year due to the timing of sales and have had to manage their way through the uncertainty in Africa. Only recently would they have become confident enough to say they have excess cash, considering the recent market improvements and the high cash flow profile of the next two years. There is a substantial increase in stripping and capex in 2024 which then needs to be funded
Q1 results will be very good...but concerned re the forward outlook for many reasons, i.e. inflation, diamond prices declining again, underground mining needed, fund raising req??
There are 140m shares odd issued, and 100m odd in the hands of large institutional investors and if GEMD bought 14m of the remaining 40m shares there should be a major move in the needle.
However they have sat on their hands and done nothing since June 2021 when the share buyback was authorized so I incline to the opinion (but don't know) that they will simply do some token buying as a share price damage limitation exercise.
Anybody care to speculate how many of the 14M they buy before authority expires on June 8th ?
My guess is not many ( though I have made a small tactical return to GEMD having previously sold out - in the off chance that GEMD do something positive for long suffering ordinary share holders )
Quite right hxul. Anyway they are only mopping up a few of the shares they have awarded themselves in the last few years.
I repeat, this announcement does demonstrate the share price is undervalued. They started buying shares today. Hence the upside move today. Read the announcement again.
it doesn't demonstrate anything until ...
"The Existing Authority permits the purchase of a maximum of 14,016,955 shares" is translated into actual confirmed purchases and the needle moves (it should)
This news simply demonstrates that the current share price is greatly undervalued.
It is good news.
Though they were given permission to do this in June 2021 and have been sitting on their hands since.
It would have better to do this mid December when the share price was 45p
At last! A great RNS, some positive news and positive action, really great news for shareholders and a stunning RNS:
"We are of the view that the value of Gem Diamonds is not reflected in its current share price. We remain confident about the future and, coupled with our recently proposed US$3.8 million dividend (subject to approval at the AGM on 8 June 2022), we believe that this buyback represents an important mechanism by which to return further capital to shareholders."
It should add up nicely to the bottom line .