One thing I would love to know is the cost price PC during this period. LuckyLuciano, where have you got your figures of $3 per gem============================================================
I am not sure skenny89
it is impossible that I have said something so silly....came on $3 per gem?...are you sure?
and what about if a gem is 100 Carats ?
as suspected we have confirmation that production is on the rise, this is a new mine and rump up production and optimization may not be reached till end of next year.
After all we are still far away from the 8 million Carats forecast.
I am also pleased that someone is willing to buy the lower grade stones, hopefully the $1.34 x Crt is covering the expenses to sort out the material....This is a good marketing exercise so that the world will get to know that there is an Australian mining company that produce natural sapphires in large quantity.
About the quality gems above 4mm, I want to take this new in a positive way.....been that a delay in selling parcels (i was expecting some sales this quarter) is because we don't what to sell our selves shorts, also hopefully more we wait more we will produce large higher quality and quantity stones, to achieve a better price.
All in all good news
increasing production, with probably increasing grade, for gems larger than 4mm
we have already a buyer for low quality gems
confirmation that management is focus on costing for those gems of low quality
...what we need now is confirmation that indeed prices for quality gems is maintained above the $10 x Cr.
Looking forward for the news..
Friday at 3,16p and 3.24p
Thought this has to be the best time to do so, if RLD is to become a profitable miner....
It is encouraging to have cash cost below $3 for gem produced above 1 Crt, and although price per Crt at $14.3 may not be the norm going forward, it looks that production of 1Crt and above gems will be profitable.
It would be wise for RLD to have an experienced accountant, able to calculate all costing, before go on sorting material containing smaller size stones.
It is better to make a small profit from above 1 Crt. sapphire than a loss in try to sell all the production.
In next news I am hoping for more details on stone size recovered, and improved production beyond the 250k Crt forecast.
...indeed can't believe that PM been the CEO of a private financing company, is going to tell us sorry guy, there is no money to finance PRG, you have lost all your hard earned cash good by.
Are they trying to kick us out of PRG for then get all these assets for themselves???????
I was invested in a similar company like PRG, which needed financing, take a look at KDL;au Australian mining company that recently found more than $10 mil to finance a similar project than PRG.
They fond the cash in no time......
At the worst a right issue in on the card.....but for PRG to be delisted and us loosing of the cash, now that I don't believe.
And what on earth was the company doing spending the best part of £2 million on a share buy-back with all the risk that being a resources explorer/developer entails?====================================
probably buying back PM shares making him a bug profit.
About profitability I am intrigued by the initial $14.30 x Ctr price achieved with the sale of first parcel.
They mentioned that this is not a representative price of ongoing sales......and I wonder why and how they have come to that conclusion.
After extensive research on the sapphire market of today, my assumption is that not even they know what price can be achieve and therefore we could see higher or lower prices .....
On a speculative note (been no expert on the matter) I noticed that the sapphire Capricorn is producing, is much clear and bright than the dark blue inky color, expected from Australian stone deposits (the one which needed heath treatment to be marketed as East Asian stones)
Looking forward for next production and parcels sale news....
With 90000 Ctrs produced in September (if i remember correctly) I am hoping for a production higher that 250000 for this quarter.
Another thing to consider I suppose, will be the fact that price per Ctr achieved at this initial stage of production, will be very erratic...
Worst time to sell this share is now and yet, we are down to 3p......topical of investors speculating on short term time frame. this share can go up or down few penny with very little investment, once we can prove to be cash flow positive it will fly IMO.
Have to admit having though to sell my self, this was based on emotion and sentiments, but then my rational mind has prevail to the point that I am contemplating to buy some more.....
One of the reason I invested in RLD is the Board of Director integrity and professionalism, you can see that from company news they are not the kind of guys shouting about the potential of RLD asset, or trying to prop up the share price with overestimated production and profits. This BoD is just going to tell you things as they stand no more no less.....and I am delighted for this. Someone here is suggesting that the company should improve its PR and communications.....maybe it would work for a 1p short term profit on the share price, but that is not my game.
• Q4 production target set at 250,000 carats
• Size and colour sorting as well as quality grading of the material mined during Q3 currently
being completed in preparation for larger and ongoing parcel sales process
100mil Crt resources assuming that one third are stone above 1 Crt, gives 33mil Crt at current market cap its $ 0.32 per Crt. This without taking away any cash at bank and without considering that only a third of RLD license has been explored...
I was calculating that we should break even at $ 5-6 x Crt. and more production increases and more the cash cost will come down.
Looking forward to next news...
unbelievable.....Luc found another 2 massive stones......813crt and 374.
...meanwhile Luc find the world second largest diamond
probably worth 3/4 times PRG market cap......lol
I don't know.....with the US indexes up on a rate rise certainty (very odd) and LUC latest find, maybe we will find someone that trow us some 15mil $ to kick start the mine.
Or maybe LUC will be a bit more patient with Mothae
I still find it difficult to believe that with all this QE of late, there isn't a financing company with $15mil spare to invest in some hard asset like diamonds.
I suppose the last resort would be issuing a billion shares at 1.5p....?
But just in case it all goes pear shape, does someone know what to do to kick start an investigation by the financial authority????
The Directors of Paragon remain in negotiations with possible funding providers to secure finance in order to complete the acquisition of Mothae...........................
In negotiation? From the RNS on 2 October it seemed to me that all we needed to do was to complete legal due diligence and contracts. Now is negotiation with POSSIBLE funding?
This is misleading the investors to me.....
..if the funding doesn't materialize, there is a very good reason to bring PM to justice for misleading investors...... wording out of funding announcements have been over optimistic and presented as a done deal.
now where is the money? PM transfer all his shares to a spread betting company not long ago, one as to ask him/her self why.
link above is an accurate example on the current Sapphire market.
Note that most/all sapphire are able to reach those high prices, thanks to the skillful marketing of those stones
by the promoters.
Often Australian Sapphire are sold for "Ceylon" or "Thai" material.
Considering those facts, I am of the opinion that RLD could achieve a much higher price than the initial $14.3 per Ctr. from the initial parcel sale.
These are still early days for RLD assessment of the potential of Capricorn mine, and its profitability.
On thing I hope is that with increased production, we will see higher Ctr. prices. This was promised by the BoD,
and is how it should be, in view of the high quality of Australian gems.
I am looking forward for news of higher production than the forecast 250000 Crt. for q3 as from latest rns,
and before that higher price per Crt from the next parcel sales.
Indeed relephant all good points and this is why I was trying to forecast a profit only on 4mm gem produced.
below 4mm gem may be too costly to sort and market so why bother.
Max production grade from Australis was (out of memory) 23crt/t, now if we achieved 7g/t we could assume that grams out of 23 grams are stones above 4mm, or some 30% of production.
If at full production will be the forecast 12.5 mil ctr, then 30% is more than 4 mil crt.
Clearly these are all suppositions cause lack of information, and at this early stage it is probably wise not to give away too many precise details, on production which may change with further development of the mine.
About the 14.30$ per Crt take a look at what GEM achieved for emerald and ruby, which are slightly less precious than sapphires......., I personally am quite confident that for stones of 4mm upward these prices can be maintained if not surpassed, logic dictate that if the first parcel is sold at 13.4$/crt more steady supply would command higher prices. Anyway I am trying to see all the positives here......lets see what the real numbers will bring.
sorry mate correction =========
, firstly the RNS has told us 250k per quarter...............next quarter mate not for ever.....
Have you got an idea of the meaning ramp up production?
as for price per crt pleas explain where did you get $3 x ctr ?
If RLD were to process and sale only 4mm stones on a 2 million Crts per year production at $13 per Crt or $10 net, it would still make $20 millions less admit costs taxes etc. Lets say less 50% making $10 kl or £7 mil profit.
I know these are all suppositions but its intriguing to know what will happen to Carats of less than 4mm, what would be the cost of processing etc. They already declare this material uneconomical so maybe we have to base out numbers on gems of 4mm upwards.
The site produced 2.3mln carats and it is estimated to be able to produce 20.8 million carats per year, with Richland targeting around 12.5 million carats a year.
Operating gross profits of around A$7 mln are possible if a price of A$4.5 per gramme sapphire was received.
Although Australis achieved similar prices when operations were optimised, it saw under 40 Australian cents during its long commissioning, which would make the mine unprofitable, notes the broker.
Note that a gramme sapphire is 5 Crts.
at USD 14.30 per Crt you can make your calculation on what potential profit RLD can achieve.