Good time to buy?31 Aug 2008 19:04
1) Share price is on a 52 week low and yet full scale production started around the 12th June, detailed data on the yields and grades at Grasfontein should be available soon. This should be favourable ...“the Group has made solid progress in perfecting the LRU sorting technology to ensure the production LRUs meet, and possibly exceed, the very high results achieved in the development and testing phase prior to the acquisition of Earlyworx.” Graham Butt, Chairman, 30 October 2007. The recent 4p spike could be revisited.
2) http://www.diamondtechnologiesinc.com/download/research-final.pdf..." Given this near term income, a ‘resources in-the-ground’ comparison with other alluvial miners seems appropriate and would indicate a market value for DTEC considerably higher than its current £40m.” (with sp @1.75p current market value is only around £3m) Doing some rough calculations the forecast income from current project, Grasfontein is (see link above) $294m over 14 years giving $21m pa (£11.5m). So nearly £1m per month. (The current market cap is only £3m)
3) Nov 07, 3 directors buy at 4.75p
4) Increasing diamond prices…“With diamond prices increasing by as much as 43% over the last six months, they are rapidly becoming an attractive alternative investment....”
http://www.wealth-bulletin.com/portfolio/content/2451613910/