Member Info for Valency

Well spoken bluebottle_uk, understandably folks are feeling the pressure but panic is contagious and leads to immediate loses at this price so it's a time requiring clear thinking in the absence of news Board. Perhaps listening to this interview will help steady nerves. If I'm wrong, I'll be taking serious pain but the sells the previous week (while I was away) were surely not an Institutional Investor as no changes to holdings have been reported as yet. Why we own DiamondCorp: ClucaGray’s Brendon Hubbard. Warren Dick 20 September 2016 00:58 http://www.mineweb.com/news/diamonds-and-gems/listen-why-we-own-diamondcorp/ Anyone consider that this may be an orchestrated drop by a outside party? ATB

Two-Minute Mystery Pound Rout Puts Spotlight on Robot Trades - October 7, 2016 @ 1:10 PM GST http://www.bloomberg.com/news/articles/2016-10-07/pound-s-two-minute-mystery-crash-puts-spotlight-on-robot-traders What We Know About the Pound’s Friday Flash Crash: QuickTake Q&A - Sarah McDonald, October 7, 2016 — 2:01 PM GST http://www.bloomberg.com/news/articles/2016-10-07/what-we-know-about-the-pound-s-friday-flash-crash-quicktake-q-a

I see a lot of buys showing as sells? Antics?? One thing is for sure, if an outsider was interested now would be the time to acquire. One would rightly expect the BoD's to address the share price movement of late though...

As much as I agree with you Jaf, we can't change corporate culture at the moment . I have to rely on the fundamental's and the transition stage we're at.

Much value changing hands and quite likely stop losses being triggered as well. The hardest work is done at Lace & a progress update can't be far away. Topped up 105K at 9:49...

Einvestein, you have big 'cajones' & a little heart for those needing reassurance, lol. Over time at some point in every investors exposure, their comes a time when their research has to form the backbone of their resilience & conviction. The current issues stuck their ugly neck out at a pivotal time but they are totally manageable through readily available tried & tested solutions in the industry. Hereandnow, noting your previous post; You would benefit greatly from the Tech report chapter 16.

Seems like contagious pi panic in the absence of news & lack of reply to investor enquiries? Aim players also head for the hills when funding is remotely mentioned so could be seeing that effect here at present? Reality is that most of the Capex & hard work is done in the Upper K4 mining block but the insecurity is centred around transitioning to production which has encountered difficulties since August. These issues are definitely not terminal but frustration is very real for investors in the absence of news at a sensitive/difficult time so perhaps the BoD's will respond to the share price decline over the past month as silence fuels further speculation.

EvenKeel, do you intend to pay a visit to the mine while you're there? I'm currently planning appointments in Jo'Burg & Cape Town between 1st Nov through 1st Dec and if the schedule allows, I'll definitely make provision to pay a visit & try to satisfy some questions.

Locals on sidelines as foreigners reap SA debt reward - Judging by the behaviour of bond investors. Bloomberg | 30 September 2016 http://www.moneyweb.co.za/news/economy/locals-on-sidelines-as-foreigners-reap-sa-debt-reward/

Nice to be back at home after burying my head in books & focusing on exams over in the US. Fortunately all went very well but I can't say the same for the share price decline here & note after reading much speculation as to why, the question still remains an open one ...? Ironfish, thanks for your effort & actually surprised you received a response from AND. I agree with your statement that that the October tender is from diamonds mined during interrupted production from July/August which was split into 2 smaller tenders, the 1st having been completed in Sept. Reality is that DCP has stuttered with commercial production over the past few months & the recent sales price average achieved was lower than company base estimate. The latter is easily explained due to low production volume/tonnage achieved in diluted development ground which directly results in lower "SFD" (Size frequency Distribution) of larger stones which is not a real concern as previous sales have shown the higher yield estimate is relatively easily surpassed with higher kimberlite production volumes. A thought perhaps worth considering is that the small quantity slated for October tender may be delayed (until higher quantity of stones are available) as a result of the low average price achieved for the similarly small tender in September because low volume tenders don't fare as well but it should also be noted that Lace never appeared on the AWDC calendar during previous tenders! September was a calendar debut and Lace only appeared on that calendar about 1 week -10 days prior to the tender date which I recall because I kept vigil on that site & provided the link when it appeared. Achieving commercial production is the much needed missing element that's fraying nerves & reflects in the share price as the delays lead to cash flow constraints as well as the uncertainty of funding in whatever form? The primary question is; Have they achieved the re-budgeted 20K tons for Sept or have additional challenges come to the fore? The rest including a rise in valuation will fall into place once this is achieved & as we are now in the 1st week of Oct, perhaps a production update will be issued in coming days/weeks.

I'm going out to dinner shortly with my Family as I leave to the US tomorrow evening for +-2 weeks. Will look in later. ATB

Hi Banksman, apology for the late reply but mentioned I'd be away for a few days. Re your post - I'm not familiar with the happenings at AUE so can't compare! It would be helpful if you could define/narrow down your "itch" to a specific issue? Perhaps it's the fact that production interruptions persisted through August? Ironically, the 1 item that is scarce at Lace also turns out to be the cause of the Aug interruption i.e. water/flooding. The return air pass has successfully been advanced to intersect with the contact and the leak sealed off at the face. I'd love to reassure you that the water/flooding issue from upper workings is permanently resolved but I can't. I will however venture to say that the risk of water/mud in upper workings greatly diminishes with the conclusion of UK4 block development which is roughly 99% complete now that the "RAP" has intersected with the contact. It is not easy to control flooding/water inflow from upper workings during development blasting as they advance in open exposed tunnels but once mining commences via "draws in the trough" the risk is mitigated through design and was specifically selected as the best (lowest risk) method in anticipation. Opening up of the 1st trough should now be in progress. Refer to the Tech Report pg.16-13 Figure 16-1 "3D Trough Schematic" as well as pg.16.21 Trough Section View. Note: Only 1 x trough is developed initially (to mine a single stope) & broken/blasted ore in the trough restricts mud/water from flooding the 310m draw point level as any water from upper workings above the targeted block collects in the "air gap" between broken/blasted ore & the un-blasted dome ring as a design control feature. Once the 1st stope has broken through 'old workings' and water/mud (if present) has been drawn off in a controlled manner, only then will a 2nd stope will be mined. Figure 16-4 (pg.16-22) is a very good development sequence guide for the "West Trough" of the UK4 Mine Lift 1 and Lace is now at stage - Top row far right diagram where the trough is being opened up. Note: The trough is located in and forms part of the targeted (K4 high grade) mine block. I do agree with DappaT that some guidance for September in the sales update would've gone a long way as it's the unknowns that spook investors & perhaps they'll do so at month end? Typical of any woman, Lace is not going to be unrobed easily but patient investors should however reap the benefit sooner rather than later as closing 'foreplay' was only momentarily interrupted and it's oh so close now....

Diamondcorp’s long-term value will sustain it through the short-term glitches - 15 Sep 2016 Alastair Ford Diamondcorp's Lace mine is now up and running an delivering grade and carat value “We’ve got a mine, we’ve got grade, we’ve got the carat value,” says Paul Loudon of Diamondcorp Plc (LON:DCP). “And we’ve got US$1.5bn of diamonds in the ground to be mined in the next few years.” In a nutshell that’s the base case for Diamondcorp’s Lace mine, which commenced production earlier this year. Lace has experienced its fair share of teething troubles, to the point where the market marked the shares down quite heavily on Tuesday after Diamondcorp said it had lost several days of production due to water issues. But Loudon is not to be set off course by a couple of setbacks. “If opening underground mines was easy everyone would be doing it,” he says. “If this had been an easy project we would never have been able to get our hands on it in the first place.” And as it stands, although the production has been patchy, the quality of the stones has been highly encouraging. “To date,” says Loudon, “the amount of kimberlite that’s been mined and processed in ramp-up is really only equivalent to one month’s worth of production of ore from the first block. But already we’ve had a 22 carat stone and lots of plus-eight carat stones. It’s only a matter of time before we pull in a 50 carat stone or a 90 carat stone. It’s a numbers game because we know they’re there.” Full article - http://www.proactiveinvestors.co.uk/companies/news/165953/diamondcorps-long-term-value-will-sustain-it-through-the-short-term-glitches-165953.html Plenty of info on the histrionics for 'hereandnow'..., lol.

Opium, at one point I thought I was the only idiot here! Congrats with the windfall in S32. Many that sold initial gift will be less impressed including the gift bearer BHP. If folks saw the predictability upon initial listing & just needed to wait patiently for the small receivers to sell off and keep topping up on the way down below 64p (-50% valuation) which was already ridiculously undervalued in respect of assets, it was sure to rerate! The rerate came sooner than I anticipated and clearly S32 is top candidate for best performer midcap diversified miner 2016. Ok, that's biased & only because we've done well here! It's always the toughest decision but I've decided to lock in some profit & trim 25% of the quite bulky holding so the rest can run it's future course. Even McKenzie (BHP) stated he'd held onto his allocation & many analysts questioning the sensibility of the demerger especially at a low in global commodity cycles. I think S32 is in a great position to stake it's own claim in commodies market and already leads with Aluminium, Silver, Nickel, Zinc & the worlds largest Manganese producer etc. As Brian Gilbertson (Founder/Former Chairman BHP) once stated, you can have as much iron ore as your heart desires but you can't make steel without Manganese and that seems to be lost on the current BHP BoD's. ATB

Welcome to the forum YieldStrength & a balanced view. While management stated they considered ramp up issues essentially resolved, I agree that there will surely be more hurdles to cross as Lace progresses. This initial mine plan (Upper UK4 block) is not simply to target a small high grade core left behind by the old timers but it's also supposed to render the mine safer for later block caving by drawing off water/mud by the safest possible mining method available. The revised production tonnage could be seen as a cautious slowing of the initial anticipated pace by management for safety reasons as the unknowns in the upper workings reveal themselves. Attempting to maintain the same production guidance at the risk of safety at this early stage would be senseless and destructive so I'm encouraged to see the revised lower production figures for the next 2 months which takes a lot of pressure off management as well as mining crews. Step back & re-evaluate... For info, the tender has been scheduled on AWDC - https://www.awdc.be/en/calendar/month/2016-09?category[0]=265 It is clear that PL is under pressure & I hope it's a priority to find the right COO + FD asap. I doubt any long termers (myself included) having gradually built up a holding over time are currently in the green and many will see this update as a 'downer' but it could also be viewed as the perfect storm for those seeking an opportunistic window subject to the view going forward. ATB

Einvestein, correct & conversion should be at the companies discretion so dilution is not predetermined. If yahoo finance graph is correct they were issued at a premium to the prevailing share price 10 Dec 2012 (3.75p) to be converted at the company discretion @5.81p https://uk.finance.yahoo.com/echarts?s=DCP.L#symbol=DCP.L;range=1d 2012 Convertible Bond terms - "The Bonds are due for repayment at 100% of face value on 31 December 2018 and interest will be paid quarterly in arrears. The first 24 months of interest on the UK Bonds will accumulate and will be added to the principal amount to be repaid. Bondholders can request conversion of the Bonds and outstanding interest at any time after 41 days from issue. Any request for conversion can be settled at the absolute discretion of DiamondCorp with ordinary shares of the Company at 5.81p per share or the cash equivalent of the number of underlying shares multiplied by the share price at the time of conversion". http://otp.investis.com/clients/uk/diamondcorp/rns/regulatory-story.aspx?cid=203&newsid=298258

G'morning, arrived home at 5am. Daison's posts yesterday were level headed & recommended and RoccB brought up the subject of financials with substantial comparative reduction in losses but production remains key to moving into cash positive territory and should be revised to at least end November if there are no further stoppages? As mentioned yesterday, water/mud issues in the 1st mining block close to "upper" old workings was not unexpected & safely handled through planning & selected mine methodology. I'm a bit baffled by the reduction of the Sept sale from 7003cts to 5700cts? Does anyone have any ideas as to why as they are in inventory, in fact the total 7003cts should already be in Antwerp? The only reason/suggestion I'm able to find is that they're attempting to balance both the current Sept sale and the October sale so that both sales will comprise roughly 5Kcts at each tender. The update mentioned only about a 3rd of estimated (9-12Kcts) Aug production was realised due to the water issue so by rolling 1303cts over to combine with the reduced realised production for Aug, they may just manage +-5Kcts to sell in Oct? Any ideas?

Interesting views today & some opportunistic ones too. Holdon, topped up 80K on a pre-set buy which was executed this morning. It's a pity there were 2 production stoppages in August due water ingress but not entirely unexpected. Those that have been here long enough are well familiar with the anticipated risk of water/mud in upper "old" workings even though the open pit was pumped dry. I mentioned early in the year that July/August is not recommended for those with a nervous disposition as they drill into "old" upper workings and also requested those attending the AGM to ask about water/mud intercepts during drilling at that time! The UK4 mine plan (Long-hole Open Stope Bottom Up) was selected by design to alleviate this risk early on before Block Caving as well as extract high grade ore left behind in upper workings. The "LHOSBU" method is "selective" allowing particular zones to be targeted and is the lowest risk mining method by which to draw off water/mud in upper workings under controlled conditions. Refer to chapter 16.2 through 16.4.2.1 of the Tech report. The only surprise is that water was struck drilling the "Return Air Pass" and not from the "Slot" which extends all the way up to 250m level and is regarded in the industry as the most dangerous part of development. Personally, the sooner water is drawn off the better and each cubic metre pumped under control is a reduction of risk as Lace progresses. For the most part, the risk was identified in advance, analysed, planned to mitigate & effectively controlled as a result without loss of life or injury and that's only due to planning and applied risk assessments!

Thanks Jaf1948 and appreciate the effort. A reply will be helpful.... I was exploring an old link re: Antwerp World Diamond Centre, more specifically their 'home' page 'trade calendar' and Lace March/April tender was not previously listed but it seems that the September calendar finally includes "DiamondCorp Lace Mine" among the others. Interestingly, the schedule from 1st -11th Sept is quite full with tenders some spilling over to the 14th. It also makes it easy to see whom our competitor tenders are! Until cash flow stabilizes and the DCP website is overhauled, the link should serve useful - https://www.awdc.be/en/calendar/month/2016-09?category[0]=265 Panning forward to October calendar, Lace is not yet pencilled in and I suspect for what it's worth, a date will only formally appear once there is assurance that export parcels reach Antwerp and are not purchased by SA dealers during the export process as happened in June. It should become easier in future re advanced scheduled dates once production stabilizes and a stockpile of unprocessed K6 builds up which serves as uninterrupted production assurance in the event of underground stoppage for any reason. I'm sure it will be a relief to everyone once we see the next tender appear on the AWDC calendar. ATB

I'd like to apologise for the "carrot & stick" unsavoury & unnecessary exchanges here. Lol. I bare no grudge and in the absence of sarcastic innuendo's, am happy to exchange thoughts & ideas with anyone regardless of opinion incl. EvenKeel. Cheers.