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Brainer, the “significant additional monthly revenue” from the contract announced on 25th June will be landing now, after the go live started in the first week of August.

A steady 30k tonnes per month is fantastic. The company seem to be doing everything they can to make this a success. All that is remaining is the grades... fingers crossed for K1 to deliver!

No official word on who the contract is with, but having looked into it, I think it is almost certainly Switch My Business (see my previous post).

A lot of the focus seems to have been on the latest £3.5 million contract, but I think some of the other recent contracts could be even more significant than that one. For example, take a look at the 25th June 2018 RNS. For a Manchester-based energy switching business in the UK B2B space with a reach of 35,000 small to medium-sized businesses, the only company that fits the bill is Switch My Business. They do business on a big scale, saving their customers £48 million over the last 10 years. So far they have just dealt in switching water, gas and electricity for businesses, but they are now branching out into a range of other services and products, including business broadband and phone contracts, and have partnered up with Toople to deliver all of these. In my opinion this is massive, and is something that the market seems to be overlooking at the moment. In Toople’s own words, “The deal is expected to result in significant additional monthly revenue for the Company.” That additional revenue should be starting to build up from now onwards, with the services having been set to go live from the first week of August. With all these contracts being announced, and no doubt more to come, the fact that the market cap is still only £1.4 million is beyond ridiculous. Of course there are risks involved, but there are a whole raft of companies with 10 times that market cap who have higher risk profiles, and have no way near the revenues or potential TOOP have. Good chance of a big rerate here in my opinion.

If Peel Hunt have finished selling, then the brakes could be off...

I think STAR has a potentially big future, but they are way further from actual profitability than has been mentioned. EBITDA loss and net loss are quite different things. EBIDTA loss for H1 is expected to be less than $100k, but net losses will be a lot higher, and people shouldn’t be surprised to see this in the upcoming results. For example, for the full year of 2017, STAR’s EBIDTA loss was $193k, but net loss was $1.3million. I only mention this pre-emptively because there will undoubtedly be scaremongering when results are released about the losses and low cash reserves, but that doesn’t mean the company cannot be successful long term.

Good update last week, and another potentially coming soon to confirm the start of K1 production. A bit surprised to see no uplift in SP on Friday, but the RNS with real meat on the bones will be the early October Q3 results. So may be investors are waiting for that. For the second half of 2018, the targets are around 5000 carats / $1.8 million revenue. Q4 is expected to contribute a lot more to that than Q3, based on the additional cone crusher being on site from last week, the higher grade K1 pipe contributing to production from September onwards, and ever deeper levels being mined at K2. So if Q3 results come anywhere near half the expected targets for H2 then BRD is well on course. It beggars belief that the market cap is still only £2 million. Huge potential from these levels in my opinion. Everything is pointing towards BRD being on the verge of a big turning point.

Completely agree. Even at the lower end of mining targets, the revenues would make the market cap look very undervalued. Lower end target for H2 would be 150k tonnes at 3.5 carats per hundred tonne, which would be 5250 carats. Average value per carat so far has been $360. So 5250 carats would be $1.89 million, or about £1.5 million. Higher end of targets would be 175k tonnes at 4.5 cpht, which would be about £2.2 million revenue. And any special stones on top of that would be an added bonus. That would be for the second half of 2018 alone, with both productivity and grade set to increase further from there. And the market cap is still only £2 million... it’s crackers! Rerate on the cards I think. Hope you manage to accumulate some more first.

You didn’t miss a huge amount. There were only 3 questions, but updates were positive. Own crusher is fixed and back on site this weekend. But instead of getting rid of hired crusher, they are holding on to that as well, thus doubling crushing throughput capacity. This was the main positive that I took from the call, and it fits nicely in line with the planned increase in productivity for the second half of 2018. Update on KV1 was that more top surface is being removed than was for KV2, so should be in towards higher grades from the offset. That is finishing off soon with first kimberlite blast scheduled for end of August, so should see some contribution from KV1 to Q3 results. KV1, as we all know, has higher inferred grades that KV2, so it’s contribution should be very positive for profitability. KV2 mining is ongoing and getting deeper, as per today’s tweet from company, so that should be progressively getting down to higher grades as well. Last question centred around chances of finding special stones. Largest to date was around 10 carats, and highest value was a 7 carat stone sold for $80k. Chances of very high value individual stones (many multiples of that) is of course small, but not what business case is built on anyway, so any individual high value stones would be a bonus. The CEO emphasised the high quality of stones found so far, albeit at quite low grades. But if they hit target production in Q3 and beyond, and grades improve as expected, then I do think it’s got huge potential going forward, especially from the current tiny market cap. No specific update on 2018 targets I’m afraid, but hopefully the start of sustainable profitability comes with the Q3 update.

The mining sector on AIM has a bad reputation because there are so many dreadful junior explorers on AIM who are so far from revenues that it just turns into a never-ending cycle of fundraising and shareholder dilution. However, some fundraising is necessary to get all companies going on AIM, mining or other. It is just a question of whether they can get to revenues fast enough to survive, and then hopefully prosper. I believe BRD are at that turning point now, which is why I have been buying at these levels. Their market cap is currently £1.8 million, and they are expected to do about £500k revenue this quarter alone. They are increasing production levels and are about to hit the higher grade pipe now. The court hearing tomorrow is of course a potential spanner in the works, and may be putting some investors off. But from an operational point of view, things are looking on a very good trajectory to me.

Production up 171% in 2017, but better still is the fact that volumes and grades are already up further in 2018 as well. New higher grade diamond pipe should be starting to produce around now as well. This is from 31st May 2018 RNS: In March 2018, the Company announced its intention to open mining operations in Pipe 1 and expected to be mining Kimberlite from Pipe 1 during Q3 2018. The Company is ahead of schedule in its development of Pipe 1 with 107,000 tonnes of waste already mined and the first Kimberlite blast expected in the next three to four weeks. Adam Waugh, CEO, commented: "We are excited about beginning to mine K1 with the prospect of a significant increase in grade." This could rise significantly on next few updates IMO. Market cap low, and current buys are under placing price. I have made huge gains on Stellar diamonds, and have accumulated a few here recently as well. Prospects look strong to me.

Hi Riddler. @Sonicshares. Please can you unblock me on Twitter? Not sure why blocked - only ever been positive on shares, including STAR. Have a position here, and keen to keep up with / contribute to the STAR chat. Thanks a lot.

https://www.jsonline.com/story/money/2018/03/01/harley-davidson-invests-california-electric-bike-company/384254002/

Bosche are ramping the hell out of this on Twitter. STAR revenues are set to go through the roof with this tie-up. It’s going to be massive IMO. Good luck everyone. Should be a fun ride.

The publicity would certainly cause a jump in the share price, but I’m not sure we’ll see STAR announcing it I’m afraid. If Bosche insisted on discretion from STAR from the outset, then I don’t think that stance is likely to change, but that is just IMO. If there is a set NDA in place, then obviously that might be different. Apologies if I have overlooked that. On the plus side, I do think it increases the chances of Bosche considering a bid for STAR, if they like what they see. This is just speculation, but it may have been part of their reasoning for insisting on discretion on any collaboration from the start. From what I’ve seen, Bosche have invested heavily in Bosche connectivity. It is relatively new, and rapidly expanding. They obviously see this as a boom sector, and STAR certainly have the expertise. If STAR’s market cap shot up on publicity, then it might be harder for them to consider a takeover bid. Anyway, if STAR’s revenues continue on their trajectory then the share price has every chance of shooting up regardless of announcements, so either way STAR is looking strong. On that note, a quick shout out to whoever just used their whole ISA allowance for STAR shares. I think you will have an excellent 2018!

I agree, IMO it�s almost certainly Bosche connectivity�s new TDL device. As far as I know they are currently launching and starting to take orders. If it is ties with this, then I�m not expecting a formal announcement, rather just a steady increase in STAR�s recurring revenues...

I agree, IMO it�s almost certainly Bosche connectivity�s new TDL device. As far as I know they are currently launching and starting to take orders. If it is ties with this, then I�m not expecting a formal announcement, rather just a steady increase in STAR�s recurring revenues...

Hi sellonnews, I completely agree that recurring orders look strong, and there seems to be lots of new interest as well. Confirmation of any big new deals, including UN, would add huge potential and excitement. But if we don’t get the UN deal, then I think the company is still very well placed going forward. Either way, the company looks to have a bright future, and is growing very nicely. Like another poster said, this is hopefully win win. One of the negatives about a single large order is that the CEO said he would do a placing to fulfil it, hence my previous line of questioning about considering short term finance instead, which I think would be a much more favourable option for all shareholders. Like you and Le Major said, there shouldn’t be any production issues apart from the initial financing, and there would of course be huge potential positives of landing these sorts of deals. I suppose my initial point about preferring not to win the UN contract is that the company seems to be doing very well even without these big deals, and I am happy with that. Either way, the current market cap looks very low compared to revenues and potential. Other positives include low debts, and BOD holding large percentages of shares. Today’s options, at a premium to the current SP, show exactly which direction the board expect the SP to go over the next couple of years. It’s a strong buy and hold for me, especially from these levels. Even without any big new deals, I wouldn’t be surprised to see a solid, steady rerate in the SP over the course of 2018. Good luck everyone.

Hi sellonnews, I am delighted with the results. Steady, sustainable growth + profitability = market cap many, many multiples of current. This has the potential to snowball, my point was just that I would prefer it to be a well-controlled roll, predominantly supported by a growth in recurring orders, rather than large individual orders. I agree that getting the UN contract would be a big endorsement of the company and products, but it would also need to be filled, and filled well. It would add risk, and although it could go very well, it could also risk upsetting the apple cart. The company seems to be on an extremely good course without it. IMO, the fact that customers are coming back for repeat orders is a bigger endorsement of the products, and with the increasing revenue it seems more and more companies are now getting on board. As another poster pointed out, this is a sector that is only going to grow over the coming years, and STAR look very well placed for that growth. This is a strong, strong buy for me at these levels. Thanks, Sonic P.S. I don’t post much, but I do keep up with the BB. This one is a lot better than several of the others I read! So thanks to all posters. P.P.S. Please can I reiterate what another poster said a few weeks / months ago, and ask all twitter users to use #starcom instead of #star. The latter is impossible to follow, and is interspersed with soft porn...

Have fun at AGM all who are going. I can’t make it I’m afraid, but if someone would consider raising the following question on my behalf, that’d be great... I was wondering if they have looked into any short term finance options to fulfil large orders, should the orders land. The CEO mentioned possibly having to do a small placing if we get a large order, to help fulfil the order before the revenue actually lands. He mentioned that investors wouldn’t mind a placing for such a positive reason, but I think he underestimated just how much the word placing spooks a lot of AIM investors. This is just IMO, but I think confirmation of a flexible short term finance option, to be used if larger orders land, would have a very positive effect on the share price. I am probably alone in this, but as an investor, I would actually prefer not to win the UN contract. The company seems to be having good, sustainable growth at the moment, and I would prefer to just keep on that course, rather than have any individual large orders causing a spike in business. IMO STAR is one to hold medium to long term for the real gains, and I would prefer slow and steady to win the race. Like Goldilocks - not too hot, not too cold! Thanks in advance for any AGM feedback on here. Good luck all.