Member Info for 100notout

Todays fall is not company specific but across the board.

Judging by the price action, what's the betting we get news in the next week that they have found another biggie...

Greeno - Can you smell anything apart from the shorters ****ting themselves?

I think it would be advantageous if Gem showed any decent coloured diamonds and any stones over 50ct on twitter. It wouldn't cost them anything and can only help promote what they have and could excite certain dealers before the tender process. They could then just RNS stones over 200ct. If this was the case perhaps they could increase competition in the bidding process.

Liberum have today reiterated their Buy on Gemd with 100p target. Lets hope they can get some of their clients into this...

Perhaps they are considering taking over BHP or Anglo...

I agree, you could probably add Graff and maybe one or two of the institutions to go in with them.

I think the fact that the issuance of new shares was not passed suggests there are certain holders whom do not wish for Gem to go down this route. I for one don't and will vote against the current bod buying up another mine. I doubt the bod would want to be taken over as they will most probably be out of a job so it is in their interests to look for another project. The thing is are they up to it?

The mine is world class and produces some of the finest stones, the current valuation makes Gem ripe for a takeover especially considering the net cash position. They have found incredibly large stones and I'm sure there are plenty more to be found. It's probably best to ignore the daily fluctuations of the share price as it's being played with and no doubt the shorter on here will get their fingers burned either through the announcement of a spectacular find or a takeover.

I do remember Dave but the brokers didn't help matters by having 26p and 30p targets which were no doubt put in to facilitate
the short seller. At least now the current targets are 70p, 80p and two on at 100p. All shares were pushed down to low levels then and on the whole have recovered. Gem have also found some impressive stones since and have got into a net cash position. They shouldn't be 51p... At the very least they should be over 75p.

I note that Liberum reiterated their buy with a 100p target on the 16th Nov.
I think that Gem are fortunate to have a mine that produces very large and desirable stones that can't be replicated by LGD's. If Gem were to merge with Firestone they would take on their debt which would push Gem into a net debt position. If Firestone and Kopane failed to make any money out of the mine what makes you think that Gem can? I think it would be a very risky move especially with the onset of rising interest rates and the covid situation. I could see the benefits of a larger miner buying both mines due to cost savings etc but for Gem to do it could be catastrophic. If Gem were to merge with another company they should perhaps look outside of diamonds. Take Rambler for example they operate in a safe jurisdiction, are producing copper and were really undervalued a few weeks ago, fortunately I picked up a chunk in the early 20's and even though they have risen they are still cheap as they should throw off a lot of money in the coming years. Perhaps Gem should merge with this type of company and then after a few years of profitability buy another mine and so on. The Gem bod need to look outside of the box. The Chairman need's to take a leaf out of his fellow director at Sibanye, Neil Froneman, as he knows what he is doing and he is really doing a great job of growing the business. He started off with a few old deep gold mines and has turned the company into a multi metal company. Sorry for the rant but I believe in Lesteng, it's the bod I have reservations about. I hope they can prove me wrong and get the share price over 100 where they should be...

Personally I would like the bod to focus on Lesteng and begin to return some money back to the shareholders as we have had rather a torrid time. With regards to the bod, they have enough problems with being able to return money to shareholders having one of the best diamond mines in the world so I wouldn't trust them with another diamond mine. Perhaps certain holders have been informed and that's why the price is where it is. A shot across the bow if you like with regards to bringing the share price down. The lesotho government own 20% of the Lighobong mine, perhaps they should buy out the remaining 80% and then they can commence community projects and take some of the flack off Gem...

Well, Gem spent a similar amount on Ghaghoo and look what we got for that.

Perhaps, but even still they could probably pick that up with the proceeds from Ghaghoo. The share price doesn't deserve to be this low.

If they find a decent stone over 400ct, which is more than feasible, this share price is really going to look ridiculous...

They can get rid of the shorters on here by just commencing a buyback. They should do something positive with the money but perhaps as I have mentioned a low share price may suit them...

Well they are a bit short sighted as the real gains will be made when Kod announces a tie in which could be sooner than most think as lithium is hot right now and bigger players want to secure positions.

It doesn't make sense to short them to this level especially considering they have found 3 decent stones of late. I have picked up a few more in the last few days.

I would say it has been sold down for a cheap takeover. What are your thoughts Dave?

I sincerely hope that some of that money will benefit the shareholders. They did say they would consider special dividends or share buybacks, well what are they waiting for... They have probably started a new local community project or are considering opening another office. Considering the amount paid in taxes and royalties, surely even the Government of Lesotho have to realise that the shareholders get sweet FA... Well it's about time we had a slice of the cake.