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Thanks for your reply Connie. Hope you have a great time out there. Any feedback would be much appreciated if you’d be happy to give it.

Any update from Kimberley Connie?

I think many on here share your optimism mcadder. Move to 24/7 operations should help productivity along nicely.

BMB - BRD are grossly undervalued at the moment, and should start to rise now that operations are ramping up. DF has done ok as finance officer, but it does look like a bit of a strange move for TSTR, as a £40m market cap company, to appoint the CFO of a £1.6m market cap company as their new CEO and CFO combined. They can’t have attracted many good applicants to the post, which should raise concern for TSTR shareholders IMO. Still, good luck to you.

I expect BRD will line up a replacement CFO before announcing to market.

Stringer - definitely when dealing with exploration companies, who often get delayed with licenses and drilling programmes. I think the trick is picking AIM miners when they move to actual mining, rather than in the exploration phases. BRD’s mining operations are progressing all the time, and so hopefully the need for fundraising is nearly at an end.

Babysham - hopefully you have picked a good entry point here, and the timing works out well. Important few months ahead, so fingers crossed. Has the potential to regain your losses and then some.

Good luck all.

I agree that it should at least be north of £5 million at this stage. Unbelievable that it’s still only £1.5 million.

It’s amazing how much AIM is guided by sentiment. Diamond miners are out of favour after a few gave the sector a bad name in past years. While some tech stocks are often backed beyond belief. BIDS released their final results today. Revenues for the year £300k, operating losses in the millions. Market cap? £30 million!

Hopefully other investors will realise the disparity before too long and get on board these massively undervalued mining stocks, BRD being one of the most prime examples.

Production will improve 40% with move to 24/7 operations.

Grades will improve further as mining gets deeper.

This is looking way too cheap at £1.5m market cap.

Not much longer to wait to find out. Last trading day of Q1 today.

Do you think they’ll just combine 2019 guidance and Q1 results announcements now? I’ve pencilled in 2 weeks today for combined update.

In the upcoming guidance, if they spell out the effects of rising cpht to investors, state examples of higher cphts resulting in profitability, and then make any mention of possible dividends or share buybacks at the higher cphts, then the SP would surely skyrocket.

They could of course put in a caveat about unexpected costs, so that they weren’t too judged on it at the end of the year, but it would at least show investors the potential. And in AIM, where investors’ loyalty to companies is tested a lot, it goes a long way when a company shows that they will strive to reward their shareholders in the good times, in thanks for their support in the difficult times.

For BRD, a rising cpht would be very good news, especially if it rises higher than expected. Like you say, if that then results in production of 20,000 carats in a year, that would be $6.5m in revenue. Depending a bit on the volume : cpht ratio to achieve that figure, the production costs would be around $3.5 - $4.5m. So the profits would then be more than the current market cap! A special dividend or share buyback would hopefully then not be out of the question as a show of thanks for investor support. It wouldn’t have to be big at all, but it would be very symbolic.

Completely agree. I was in STEL when it rose 300% in a day last year. Similar setup here.

Yes, hopefully we will look back at the current SP in amazement that it was ever this low.
Upcoming Q1 update really has the chance to be pivotal for the company, so hopefully they are making the most of the last days of the quarter, and getting as much out of it as they can.
Any improvement in grade on the 2018 level of 3.28 cpht will be progress, but obviously the higher the better.
300k tonnes at 4 cpht much more favourable than 400k tonnes at 3 cpht. The same number of carats at the end of it, but for only 3/4 of the production costs!

They need about $3.5m in the year to break even.
If Q1 production is 43k tonnes at 4 cpht and $350 / carat, that would make revenues of $600k. Plus the $150k from the 2 individual stones would make total Q1 revenues of $750k.
43k tonnes at 6.2 cpht and $350 / carat would make Q1 revenues of $1.1m.
Q1 is traditionally the slowest quarter, due to it being the wet season, and moving to 365 operations should increase capacity by 40%.
If they target around 300k tonnes for the year, at 85k tonnes per quarter for the next 3 quarters, then at 4 cpht, that would be revenues of $1.2m per quarter, plus any additional individual high value stones. And at 6.2 cpht, it would be revenues of $1.85m per quarter, or $5.5m for the final 3 quarters.
The economics of it look good to me.
Can’t believe this is still down at a £1.5m market cap.

I suspect the 2 large diamonds selling in Feb for around $6k/carat had skewed the $/carat for Jan / Feb, so to get a more even representation of what it will be going forward, they probably want to wait to include the March tender results. They have also only just started mining the undiluted kimberlite on the K1 pipe, so it makes sense to get more info on the grades down there before releasing the guidance update.

Hopefully we’re still on for anything above 300k tonnes at 4 cpht and $350 / carat, which should result in profitability for 2019. Almost all my attention will be on cpht when Q1 results come out, and to a lesser extent the $ / carat. If the cpht proves to be above 4, and possibly even nearer the 6.2 inferred K1 estimates, then things will start to get very exciting...

I’ve been slowly adding to my holding while it’s quiet. Personally, I think the current levels present a good buying opportunity.

0.2675p to buy now. 10% below placing price, so hopefully won’t drop any further. 2019 guidance was supposed to be released in February (as per Jan 10th RNS), but wasn’t, for whatever reason. Hopefully it’s because the Q1 grades are so good that they can’t work out guidance until Q1 is done, and will release it with the Q1 update in early April. Here’s hoping.

Yes, they’ve stated profitability at the current $327 / carat level comes with anything above about 12,000 carats mined per year (40k tonnes per month at 2.5 cpht, or 400k tonnes per year at 3 cpht). So theoretically for this year, if the projection is 300k tonnes mined, then breakeven would be 4 cpht, and anything higher would be pure profit. Cpht looking like being the key factor in upcoming announcements, but also an eye on the $ / carat, which will hopefully have been nudged up as well by the larger stones.

https://m.youtube.com/watch?v=Y2rrH9ziELs&feature=youtu.be

Worth another look for anyone who hasn’t seen it. Interesting comment from about 15 minutes in saying that we are likely to have positive surprises in grades of diamonds recovered.

The last slide (16 mins 20 in) then nicely outlines the significance of achieving higher grades. At a throughput of 40k tonnes per month, and $327 / carat, net processing profit goes up from $3.81 / tonne at 3 cpht to 7.08 at 4 cpht, 10.35 at 5 cpht, and 13.62 at 6 cpht.

So for the same processing costs, profit would go up by $400k per month if grades go up from 3 cpht to 6 cpht when we get down to the undiluted kimberlite. We should be getting down to those levels very soon, so fingers crossed for the positive surprises in grade.

2019 guidance figures should be interesting, but all eyes will also be on the cpht in the Q1 production update in early April.

Hopefully the grade is increasing as planned as the mining gets away from the undiluted surface material. It would have a huge impact on profitability if it is.

Like Russ said, the interim results RNS from 20th September 2018 are the most recent published accounts, which cover until 30th June 2018.

At that time:
Convertible loan £670k
Loan facility £190k
Finance lease £35k

The convertible loan has a term until 16th October 2021, so no near-term concern at all. The rest should be easily manageable if 2019 production levels and grades live up to expectations.

Hope that helps.

I agree as well. Today could easily be the last opportunity to buy around the 0.3p level.

Potentially very exciting times ahead, and I think it could all kick off with the 2019 guidance and Jan / Feb production update RNS, which should be released later this week.