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This is heavily discounted and undervalued in my eyes based on positive Q3 results, that most be were expecting. Should at least be 20p in my view of that. I feel everyone is waiting for Q4 results which should be better with big diamond sales. There is always a blip of bad news at year end so to accounting work which may hit profit/losses but does not hurt cash flow which is the most important thing right now.
I think a strong Q4 this should pop to 25-30p. Longer term prospects would be much better.
Talk of 45-55p this year is a little hopeful but would not mind being wrong!
I think the biggest positive here is that net debt is down (even if by a fraction). I think most people would have been hoping debt would come down, but hand on heart were expecting a slight increase again to last quarter - so this is a massive positive.
Finsch results are a little disappointing, but whilst 55,000 carat behind expectations sounds a lot, it only about $5m.
My stance of weak buy nudging to buy remains.
Ps Also like new CEO comments and commitments.
My maths was about $40m go all those diamonds also! With maybe swing 5-10m swing either side depending on quality.
Hopefully takes a little dent out of debt and debt service.
Hopefully the ‘normal’ diamond volume output and quality improves though in next Q update. If it does this shares could fly.
It’s the gift that keeps giving.
I think your exactly right. Big trades seem to be blackrock in recent times and they seem to be selling more so naturally dragging share price through the mid.
Still think there is value here and would buy more if I had free cash. But right now I am holding.
Hoping for a positive Q3 update in April update.
I think it’s oversold now.
Everyone is making too much of the VAT issue and confiscated diamonds. On the flip side, I can say the same for the two pink diamonds, whilst is a nice added bonus is not going to completely change the financial direction of the company (might get 10-30m??).
Biggest issue is the debt pile and reducing that. Yes it increased last quarter update but it is definitely slowed down compared to the previous 12 months. For me management two main focus needs to be exploring how we best reprice our debt and future funding requirement, and the of chief of operations needs to maximise free-cash flow from operations so that this can pay down the debt and dare I say dividends one day (like a few years back!) . If they can do this the stock has massive uptick value, but not withoutstanding certain risks.
The recent accounting loss has a lot of non-cash accounting, so it’s not as bad as it looks.
Production and revenue is growing, but cost savings need to be managed and delivered better.
If the CEO comments that net debt in June 19 will be in line with the debt balances in dec 18 then we can expect a net debt reduction in the next financial results update. This will be a massive positive!