Member Info for 100notout

I agree Dave. It's good to see the prices being achieved. If they find a few biggies and can contain these sale prices it certainly bodes well for the future.

But what will be a better investment with regards to inflation, a diamond mining company or diamonds?

Well it's up today Dave. Lets hope they can push on up.

I still have quite a bit left but was hoping to get a bit more than 44p. I haven't sold any today but perhaps the Libernum note will give them a lift. The problem here is the illiquidity as you can only sell a little at a time. If I decided to sell the lot I doubt I would get more than 35p... Imagine what it's like for the large holders, they are really stuck but perhaps they should get off their arses and get rid of the jokers running the show. Their only hope is for a takeover and let's hope that happens.

Steve - Re: Copper miner. You could check out Rambler, although they are up 12% today but they have recently sorted their finances out. I am still a buyer on the dips.
Sibanye have just picked up a large copper mine, although they are mainly PGM'S and gold but are a solid company on a pe of less than 5 and a yield of 12%. Sibanye are my favourite miner by a country mile although they have wage negotiations going on with regards to the gold mines. It could work in their favour if the miners strike especially if covid increases as currently the division only equates to about 5% of ebitda. Worth looking into and Froneman is one of the best in the business and I have confidence in him which is more than I can say with the bod here.
Anyway good luck with finding one and I hope it works out well for you.
Liberum have reiterated their buy on GEMD today with 100p target although this is the fourth one in the last month.

Thanks Dave - No I intend to sell the lot. Having said that as soon as I have sold them all they will probably get a takeover offer.
I hope it works out for you and wish you the best. I should have sold the lot 6 months ago but I don't want to be in a position in 6 months time saying the same thing... I still think the mine is world class but unfortunately the same can't be said for the leadership.

I don't have to sell but wish to as I have no faith in the bod. They should soak up my shares if they believe in the company...

I am sorry for the drop Redwine but perhaps the directors will soak up the remaining shares I have to sell. I have only sold 150,000 shares since Friday and they drop the price by 10%...

I decided to commence selling on Friday. There seems little in it for shareholders. As far as I see it there are three benefactors and they are the bod, the Government of Lesotho and Graff. Graff have been getting a decent supply of diamonds, the Bod an excessive remuneration and the government of Lesotho a lot of money via taxes and royalties. What have shareholders got! One dividend in the last few years whilst they sit on a pile of cash. Even the Lesotho community have had more spent on them than we have had in dividends and it's our money... Considering the amazing stones the company unearths it would seem there is a black hole. The company state on their website they want to create shareholder value its more like shareholder destruction...

Your points are valid and relevant pandamonia. I would ignore most of the drivel which is written on here as shorters want to frighten weak holders into selling. MCRO is a great company and grossly undervalued. Like you I am happy to get the dividend in the meantime and reap the long term benefits from capital growth. The company is doing what they set out to achieve in their 3 year plan, so I don't really know why people are getting their knickers in a twist. They have sold a division, which will lower debt by $400m and have exciting new partnerships with the like of AWS. Why investors would want to take the risk of shorting this when they could wake up the next day for MCRO to have a takeover offer is beyond me.

A pity the RNS was for this and not a large diamond discovery.

Going by the AGM update it confirms the company's policy to only engage with its large shareholders (holders over 10%). They don't seem to want to engage with smaller holders even though many of us have a much larger stake in the company than the directors and these were purchased not given in an undeserving bonus. I will be voting against all the directors if the share price languishes at these low levels in such a strong diamond market.

The bod should be getting some good results over the next couple of days with the latest tender. They should use 10% of the proceeds to buy back shares and take the shorter on. This share needs a wake up...

The reason SA didn't bleed is because they know that omicron is not as bad as the rest of the world thinks. This has been overstated with the media overplaying the situation to cause panic so their paymasters reap the benefits.

I wouldn't be surprised if we finished in the blue today...

Vast obviously thought they could make a go of it with Ghaghoo and with diamond prices increasing would the bod now reverse the process and decide to mine it as the company has spent a fortune on it?

I agree Lightweight. It's just a matter of time. They have turned this ship around...

It looked rather reassuring to me, yet I am a shareholder not a shorter.

It's probably best to go to the AGM and ask them directly on their intentions to increase shareholder value as there is very little at the moment especially considering the book value of the company, net cash position and rising diamond prices. Having said in the meantime you are well within your rights as a shareholder to talk to their IR and raise concerns. Some companies are good with having dialogue with their shareholders and some are pretty awful. It does seem as though the bod are running this like a private company if they want to continue like this they should commence a MBO or transform how they currently operate.

Probably just as well they cancelled the tender in October if prices have risen 5-10% in the last few days. That is a significant increase and we should end the year with a good cash balance.
It's going to be really important for the Lesotho government to keep the diamond mines open as they are a big contributor of their GDP, source of royalties and tax revenue. Personally I think the threat of omicron has been overstated and Gem will bounce back strongly with the rising diamond market.