Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
While the gold price is going to touch $1700 per ounce, it could be a great time for diamond to shine too. As the gold is getting expensive, the jewellery industries and actual physical gold buying company must be running away for other precious metal such as diamonds to stock up their warehouse. No, individual company who will be buying physical gold to sell it to their clients will be interested in buying at this spot price, though, must be happy to sell their current stock at this price (but with no end buyers). Speculators are driving the gold price up until sign of Covid-19 containment. China is already showing some sign of improvement in containing this virus cases.
Some of the diamond mine closing and De Beers and Alrosa are reducing their production output to prop up the price per carat. And Chinese market, the third diamond consumer after USA and India coming online slowly could boost the demands for cheaper diamonds over gold. Hence, high prices of gold and falling prices of oil and gas could make investors seek for alternative investment such as to diamonds too. Keep Calm and Be Positive.
Fatgreek1, MMs is not dropping us down. It's the company management who let us down by doing the placing at 85p and the investors like us are showing their disappointment by selling it. Their would have been lot more sales than buying if their was liquidity on this shares. Nobody wants to do fire-sale. But if the management delay in producing positive rns, then, investors will not hesitate to run away from this company.
BRD has become the company where investors will be the one to suffer for the benefit of directors who has less to loose. If the management are confident on their work, they need to start buying more shares to have their skin in the game. Only allocating options.
Itaconix products are into those sectors that are widely being used daily as a means of necessity in every household. slowly gaining traction in this multi-billion industry. CEO with maximum holding of shares in this company along with other directors holding sizeable numbers.
The share price was near to 2p two weeks back before sell off starts due to the reason of Covid-19. CEO John should really have nice plan of fund crunch in the company. That is why he has not mention of cash issues in his most and recent rns. Must be doing his best to give the market tada (surprise!). Good rns today and in the past for building potential pipeline of revenue stream for the company.
Can we expect the fireworks from the Corporate Presentation that will be release by BRD later today in its website?
It brings the question whether company is releasing those already digested information or new information to the market.
Would the company be releasing another rns tomorrow - big stone?
Despite the increase in production and revenues, if the share price does not reflect, their is possibility the recents warrants of 85p per share might drop to 50p with another fund raise and further down another time and so on.
Bostwana diamonds on the move again. I wonder if Bluerock diamonds management has not consolidated our shares, BRD would have much higher share price (before consolidated price) and market caps. Hoping our days to rise will come soon but nothing of that prospective news is due soon until Q1 production report or big stone update (me think). if that Q1 update is also not as expected, then? May be management can come up with more indicated diamond resources available information.
£2m was the full last year expenditure. The trading update rns stated that on 31 December 2019, the company had net cash balances of £0.6 million. Looks like in average, the company is making an expenditure of £.15m per month. So hoping that the company is being cash savvy with no new product development expenditure happening and some revenues is incoming on regular sales, may be the company has cash for next 2-3 months to sort out its cash problem. CEO John looks resilient and confidence that he can sort out the cash problem through other measures than share placing considering he has not spoken about this issues in the past rns and interview. Expecting for SURPRISE soon.
unless you have inside information that is only allowed to be publish through rns, I am sure everybody here including you, can write what we are guessing and predicting for future expected news by the company. But if you want to keep it yourself and to not share your analysis and understanding of the company future, then its upto you.
If Spreadex is dumping ITX share to get in again hoping at placing price, are they up for disappointment when there is no placing and cash is arrange from financing or through other ways and share price moves higher and higher.
John its time to release your remaining option to get rid of cash strap position of the company
You folks may say I am deramping but It looks like management of BlueRock Diamonds may be abusing their power inside the company, why would they be worried about external abuse.
- Paying hefty interest rate to themselves (former CEO) and new management also not acting to get rid of it quickly
- Buying asset from their another invested company – not doing transparent tender calls with other companies to get competitive prices for asset. If that is the only available, then?
- They are paying that plant cost over three years- wonder there is any interest attached for paying on instalment
- Not being transparent on how much cash reserves company had before and after placing
- Board knew they need to raise money (after spending all those revenues earned of 2019 and money raised twice in early 2019) but did not do any during January when the share price was above 110p, most of the month – only their brain got lit up (ting!) when the share price starts dropping below 100p.
- Giving favourable terms to Teichmann- I am sure Teichmann is asking their work done fees strictly for every month. Or are they telling ok you can give this month fees on instalment over 6 months and so on for coming months. Thank you for giving us contract
Connie what sort of fireworks can we predict to expect from company next week:
- takeover information from Teichmann or other rival nearby companies at massive valuation?
- Big stone found? - if yes, then they must have been keeping it secret just to tell us after placing to benefit them and their nearer and dearer
- Q1 production report will only come in April first week
- Numovista plant, for production booster is only coming live into production at the end of Q2 2020
- Connecting to national grid will obviously take more than couple of months
- Management only interested at piling Options (also hasn’t bought any) for them and forget about buying at regular or premium price
- Company conducting due diligence work to purchase another mine field? – no, way.
- Obviously company development plan for the next months/year - which may produce no material impact because they might be saying the same information which we all know.
- Am I missing any?
The surprising fireworks, they have already given us- placing to raise £1.9m i.e. also they are not getting most of the money now. Yes, the company is doing more production, brought and working hard to bring more revenue than previous year but spending money at the same rate.
It is time that we all retail shareholders to unite together and press for management to start making regular communication to improve liquidity. Despite management engaging with shareholders, the low liquidity is stopping both institutional and retail investors from investing in this company. Me think that.
Went through Teichmann website, they does not seem to be like taking over company.
The management kept on telling us that they are applying measures to cut cost and this avoidable cost where former CEO was reaping the company by charging 35% interest from his own decision for how many months in the past until-to-date? We don’t know how many of these petty expenses management are over-looking that are mounting up to reduce the profit.
With the amount of transformation new management are doing (I am not saying they are not doing), I also have substantial investment of my ability as you (Connie) have to become significant holder.
If we knew we are going to get a placing at 85p now, we all (including you and Gibson) would have sold out from well above 120p (I would have not bought it), forget that 149p. I do not want to dwell much on this.
But the way the placing has been done, I am not happy. Yes, some of the money will be used to purchase Numovista plant which will be costing approx. £650K (according to rns). But they are making an instalment payment for it over 3 years. Some of the money will be use to enter into agreement to connect national grid to bring cost reduction.
However, the management could have used the monthly tender revenue that company is generating. They could have even gone for arranging finance where they could get required amount of loan at reasonable rate (not that 35% per annum charged by cartel style former CEO) considering the turnaround management is making.
And we did a placing raising money to use it for improving production facility for increasing production and hopefully reduce cost. Most of money provider Teichmann is hugely getting benefit. They can pay it in three instalments over six months. If the company need money, they should be asking for it now. Otherwise only raise required amount of money. And management has confidence on themselves to improve productivity and reduce cost. This when seen will obviously reflect on the share price and again raise money at a much great price when management thinks company need it.
Feeling uneasy with this placing.
Adam Waugh loan to company of £150,000 has an effective annual interest rate of around whoooping 35%. I am sure they could get more amount than this at much cheaper rate if they have gone to the financiers. No, need for placing too. Even retail investor with deep pocket would be happy to lend them that money if they knew the interest rate they would be getting.
Cannot believe where are those monthly revenue going- directors pocket and benefiting their other investment co by purchasing its asset?
Hugely giving benefit to Teichmann by letting them to phased their placing investment over six months in 3 equal instalments. And I believe on every instalment payment, if the share price appreciates during that time, they will benefit by paying the placing price.
Directors not willing to have skin in the game by not participating in the placing or buying shares if they are that much confident. Granting themselves an option only- not FAIR, only reaping shareholders.
John is doing both adding value and creating noise to move the company forward. It really looks like individual entity is building its stake in the company. We can see numbers of 250,000 and 500,000 shares trading quietly to minimise the jump in share price from the past couple of days. But this £11k and £20k holders who cannot resist their patience (most welcome though) should/wish be different entity. It is not the good time to be out of this for tiny profit especially us retail investor, 2p and above is coming. HANG ON TIGHT!!
BOD who has no reported revenue-to-date has announced that they will start drilling this week and its share price is flying with its market capitalization at above £6m. BRD who has reported revenue of 2019 to be £4.1m and management are planning to ramp up for more production has its share price dropping with market capitalisation now reaching to near £3m.
The reason for not announcing monthly tender result is answered in shareholder Q&A by Mike. Please go through it for your understanding if you have not.
https://www.valuethemarkets.com/2020/01/30/video-bluerock-diamonds-exec-chair-mike-houston-talks-through-new-management-teams-strong-progress-and-ambitious-growth-plans-in-exclusive-vtm-presentation-brd/
Mate we are not going to receive information on January Tender, straight wait for Q1 report 2020 in first week of April, 2020. The company will only report of monthly tender result if any single diamond cross $50,000 sales or above.
I am sure Just January tender revenue was well above $1.5m considering BRD already had December, 2019 diamonds worth above $1m to be sold in January tender and if you add January diamonds, tender revenue in total would have by maximum reached $2m or even crossed above referencing to Mike confident.
The imminent future update we can hear before Q1 report of 2020 could be:
- Possible Big Diamond found: looks like Teichman crusher is crushing diamonds too along with ore so we are not receiving any news on big diamond for long time.
- Company development plan – increasing production and lowering cost
- Audited Year End Financial Information
- I don’t think directors are willing to increase their holding to bring confidence in the market
Keep an eye for big trades, Jupiter asset management is re-considering holding Itaconix shares?
Itaconix was in Growth and Innovation forum yesterday where top investment experts, fund managers, company executives were attended.
May be John is building up the product line which has the potential of bringing additional revenues in the future. With this, we may be getting a surprise update soon that Itaconix has secured a funding from different sources over share placing resulting in its share price rocketing upwards. Buy in or will be left looking.
Market is worried about the cash position of the company. Until this is solve, the share price will not go up. John we need clear information soon on funding the company for its growth. The quick and more than revenue spending expenditure style is not helping the company- need less expenditure with more sales revenue, not the opposite.