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As mentioned, TransHex takeover will only be the start of Christo Wiese's return to the diamond sector and we're bound to see more of his aggressive acquisition style in the future. “There are opportunities for consolidating diamond operations in southern Africa,’’ he said. “Obviously we will look at growing the business as much as we can.’’ http://www.bloomberg.com/news/articles/2016-08-22/billionaire-wiese-sees-potential-to-consolidate-diamond-mines Being reasonably familiar with his strategy through two his other ventures (Steinhoff & Pallinghurst) my take on his future moves (for what it's worth) are as follows - He will almost certainly look at additional smaller low cost quartile operations to further consolidate the initial acquisition of TransHex. Rockwell may become a target but alluvial diamond mining is very unpredictable from a production/revenue perspective due to the nature of placer type deposits and the best way to stabilise group revenue of such a future consolidated unit, would be to acquire some fissure/dyke operations and or a producing kimberlite diamond pipe. Once a sizeable 'private' group has been built up & costs trimmed through consolidation, he may either focus on mid tier players in the SA diamond sector eyeing further expansion or once value has successfully been created, he may eventually opt to flog the sizeable group operations to a party such as 'Sibanye' or Pallinghurst both of which are rumoured as possibly having eyes on the diamond space? Note - I am not insinuating that Lace is in his sights, I'm just providing an opinion as to what might be anticipated in regard to his probable forward strategy in the S.A. diamond sector. ATB

Einvestein, the 4601 carats from slot material originate from underground production and will test DCP $164/ct base estimate. We will know soon enough if they can exceed that as in both earlier sales during Q1. Rough sales have held up well so far this year and DeBeers July sales (6th site 2016) reported encouraging results. http://www.diamonds.net/News/NewsItem.aspx?ArticleID=57669&ArticleTitle=De%2bBeers%2bJuly%2bSales%2bTotal%2b%2524520M Alrosa Q2 sales also produced good results - http://www.diamonds.net/News/NewsItem.aspx?ArticleID=57595&ArticleTitle=ALROSA%25e2%2580%2599s%2bSecond-Quarter%2b%2bSales%2bBuoyant The question of rough trade expectations in the 2nd half comes to mind due both Alrosa & DeBeers having quite aggressively sold off stockpiles from last years slump along with their current production albeit in a controlled manner? Although Lace sells through tender/auction (competitive tension) principle which is very different to both DB & Alrosa utilising the pre-approved "site holders of choice" system, it still remains to be seen how much 'rough' has entered the market and of course how much of last year's overstocked 'polished inventories' have been reduced to date and still requires to be filled in anticipation of the festive season? The short term share price will likely be gauged based on month end sales revenue but I also think that existing and 'new' investors would also be looking for news of at least a full months stable underground commercial production to further de-risk & boost the balance sheet. If that is achieved throughout August then the next tender will be assured for end September. Interim results are due month end & perhaps shortly thereafter an update on the August sales result along with current production figures? All things considered, the share price remains a good value proposition to further accumulate in the short term.

Spot on Daison. There are no flies on the man and after last years poor sector performance, his acquisition was shrewdly timed to capitalize. Remember the name, it's not the last... http://www.mineweb.com/news/diamonds-and-gems/what-is-christo-wiese-getting-for-his-r190m-in-trans-hex/

Agree with your low appeal sentiment on Trans Hex hence the reasoning/intention to take it private. Lumpy revenues are the nature of the beast in alluvial mining (low grades but high value stones) which is their primary focus and I think they may have some former de Beers tailings operations as well as 2 x recent alluvial concessions in Angola requiring more development capex? The current market cap is actually not reflective of true value hence Wiese's interest. He is not a billionaire through silly acquisitions but rather seeks ailing/unloved bargains to expand. He is also a kingpin at Steinhoff if you recall our recent chat and they've just concluded the Poundland acquisition & are in process of acquiring Mattress Firm HC for $2.4bilion which gives the company instant majority market share in the US. http://www.marketwatch.com/story/steinhoff-to-buy-mattress-firm-for-24-billion-2016-08-08 Perhaps the plan will be to consolidate the smaller alluvial operators in the middle Orange river region which could bring Rockwell Diamonds into focus? I don't however think we've heard the last from Christo Wiese as he has a history in diamonds and once he focusses on a sector he is driven by expansion!

Trans Hex was one of the recent tipped parties in the Lace article and turns out the hunter became the hunted. Recall the discussion around Sibanye Gold & Pallinghurst? One of the larger than life characters discussed namely, Christo Wiese (Billionaire) is the largest private shareholder and Board member in both aforementioned companies serves on both BoD's seems he has taken a liking to the diamond sectors future outlook. http://www.diamonds.net/News/NewsItem.aspx?ArticleID=57715&ArticleTitle=Diamond%2bMiner%2bTrans%2bHex%2bFaces%2bTakeover%2bBid Article in Mimingmx- "Christo Wiese who told the newspaper that he saw “… great potential for diamonds going ahead”. “The opportunity arose and some of my family companies decided to get involved. I’m not aware of the availability of other diamond companies,” Wiese told BDLive. “It’s too early to spell out a strategy,” he added. http://www.miningmx.com/news/off-the-wires/27777-christo-wiese-storms-back-diamond-mining/ I don't expect anyone believes the statement above and he undoubtedly has a clear strategy going forward. Keep a watchful eye on his aspirations as there will undoubtedly be more.... ATB

Re my post Wed 10:12 - "The grade indication (31cpht) on the "fringe" or contact area of the west slot is not too shabby to commence with & it will be interesting to see how grade varies/improves as they progress deeper into the delineated core of the mining block? If memory serves correct, the south western areas contained lowest grades of K4 and northern zones the highest?" - Refer to the Technical report Chapter 6.3 (pg.6-5) "Internal and Pipe Margin Geometry" - http://www.diamondcorp.plc.uk/projects/the-lace-project The current 1st mine block is between 290m (doming level) & 310m (production/draw level) and the 3D image helps to envisage the "west slot" location bordering the K4 contact and general orientation is described in 6.3 - "The delineation drilling to date has shown that a central SW-NE oriented “ridge” of K4/K2 coherent kimberlite occupies the Lace Main Pipe, from the 230m level to the deepest intersections at ~875m, gradually flaring out to occupy greater portions of the pipe, with depth. This coherent kimberlite ridge is flanked in both the northwestern and southeastern quadrants by K6 volcaniclastic material, generally with sharp contacts, which in turn grades at the margins to heavily dilute CRB units". "Within the coherent kimberlite ridge, several “pods” of K8 have been intersected above the 350m level that range up to 20-25m in diameter and likely represent basaltic country rock material assimilated early in the intrusion history of Lace. Within the southeastern K6 unit, several large rafts of country rock up to 20m in width have been intersected to date, of both shale and lava, depending on depth". "Above ~290m, intercalations of K6 with K4/K2 are evident and become more common upwards, suggesting this depth marks the zone of breaching of the K4/K2 intrusion"... etc. It may also helpful for orientation to view Figure 14-1 (pg.14.8) which provides a view of the 290m level from above.

Thanks einvestein. Rough trading dipped slightly during June low season but July positively bucked the trend. Polished followed low seasonality & July was the slowest month of the year in mature markets but interestingly - "trade with Hong Kong remained steady and gains were recorded in exports to UAE and China - the latter increasing 63% in value and 143% in volume compared to July 2015". http://www.thediamondloupe.com/articles/2016-08-08/antwerp-rough-diamond-trade-rebounds-july-polished-still-slow

Hi Mac, long time no see...! Trust you're well? Yes, looks decent but need to heed lessons from July stoppage which hopfully served as a relatively cheap reminder! The grade indiction (31cpht) on the "fringe" or contact area of the west slot is not too shabby to commence with & it will be interesting to see how grade varies/improves as they progress deeper into the delineated core of the mining block? If memory serves correct, the south western areas contained lowest grades of K4 and northern zones the highest? I need to check definitively on that when I can access the resource statement (blocked as I'm in Shanghai) but will make a point to clarify because if memory serves correct then we should see a progressive improvement as mining progresses northward over time... I'm abslotely bushed at the moment and a home bed seems to be distant memory for now so if someone cares to verify the K4 zonal distribution peculiarities, it would be much appreciated? The tech report is the best place for bedside reading. Keep well Mac & ATB.

Olip, perhaps you should re-read my post on Sunday. Production tonnage figures quoted are in fact company quoted development tonnage stated in 2 Dec update versus the Tech report (Table 16-7) detailing development tonnages to end June and they are not my estimate. I also cautioned you in that post as follows - "Play around with the figures to end of H1 and note ore remains mixed during development when you apply grade" I did however make an attempt to estimate carat production to end June for Banksman on 16th June quote - "Note re. My estimate depicted for Q2 kimberlite stones in Antwerp by month end needs correcting - The estimate methodology should have excluded any "tailings effect" thus kimberlite production estimate from 47,342tons @ average grade 22cts/100tons (50/50 K4/K6) = 10,415cts - 1838cts kimberlite diamonds hijacked = 8577cts (excl. tailings. That indicates a sizeable cache under prep for tender SUBJECT to grade and ratio K4/K6 ore... PS. The need to avail of mixed development ore & it's influence on grade was also highlighted in the last sentence of the above post 16 June and you seem to be having difficulty coming to grips with mixed ore through development to end June? It is most likely also for that same reason that you fail to see how +-10K cts/month from end Aug is viable? They are now mining actual K4 within the delineated mining block.....

Apology for not replying sooner! I did mention it was crazy season & had little time for my Family since early July. Firstly, you are most welcome & I do agree that verbiage in updates could be more direct and it seems that once legal entities have restructured an update it often loses the intended crispness! Your question re enquire on "next sale" was noted but I did not have the time nor did I want to relay it due to it's sensitive nature. I trust you will understand. There's been a lot of white noise in the absence of an update so perhaps the following will assist? From previous comms unedited - "Because of the government regulations in SA and Belgium it takes 50-60 days to get the diamonds from the mine to end sale and cash in the bank" The info can be put to good use by applying the above to the sales update 5 April and subtract 7-8 weeks. What period do you conclude the last run of mine that contributed to the end of March sale? If your answer is the same as mine i.e. early to mid February, then it should in all respects indicate that the vast majority of stones sold in March were carried forward from 2015 limited production, bulk sampling, development tunnels, screen size trials & tailings (most of which was held up in the resource statement evaluation analysis.) and a small contribution (5 weeks) for January + perhaps 1st week of Feb 2016 production? To put it differently, roughly a 3rd of Q1 production contributed to March sale & 2/3rds (+-2300cts) rolls forward as well as Q2 production range i.e. 49500tons (as per2 Dec) to 47342tons (as per table 16-7 Tech report). Don't forget to deduct the S.A June sale & do some interpolations. Tailings are unaccounted for and are an additive bonus. Play around with the figures to end of H1 and note ore remains mixed during development when you apply grade. I'd be most interested in your conclusions??? Looking at Antwerp Aug sales calendar it seems active between 20-28 Aug (Rio Tinto & Kao mine) tenders. Lace needs 8-10Kcts to attract competitive bidding tension & pricing. The above tender period would work pretty well factoring in 7-8 week delay interval from end Jun to possible next tender date? Perhaps the coming week will see an update in this regard? I leave early tomorrow to the Far East on a tight schedule for a week but will attempt to look in when possible in anticipation of positive news. ATB

Thanks BitSA, I don't know whats cooking on Aim but couldn't buy & volume was at basement level Friday. MM's were happy to take shares off my hands at well above the bid? Perhaps an order being filled?

Interesting large spread. MM's happy to take 50K at 6.02 but can't buy anything even above the ask? Maybe they're expecting news? Anyone else try to buy today?

Opium, you may find this interesting.... Itochu, Mitsui Said to Vie for Anglo Manganese Venture Stake by Brett Foley Ichiro Suzuki April 29, 2016, 7:05 AM GST - "Japanese trading houses Itochu Corp. and Mitsui & Co. separately bid for a stake in Anglo American Plc’s manganese assets in Australia and South Africa as the miner shrinks its business to weather the commodity-price rout, according to people with knowledge of the matter". "Anglo is considering the offers for its 40 percent holding in a manganese joint venture with South32 Ltd., the people said, asking not to be identified as the information is private. Perth-based South32 has an option to purchase the stake, which may fetch as much as $700 million, and may decide to pre-empt an agreement with another party, one of the people said". "Spokesmen for Anglo, Itochu, Mitsui and South32 declined to comment. South32, which was spun off from BHP Billiton Ltd. last year, said in February it would be willing to acquire Anglo’s stake in their manganese joint venture, if the price was right". "South32 owns 60 percent of the manganese joint venture, known as Samancor, and is the operator. The business, which is the world’s biggest producer of the material used in steel production, holds mines and smelters in South Africa, as well as the GEMCO mining operations at Groote Eylandt in Australia’s Northern Territory and the TEMCO alloy plant in Tasmania". - Read full article - http://www.bloomberg.com/news/articles/2016-04-29/itochu-mitsui-said-to-vie-for-anglo-stake-in-manganese-venture

Have to agree & like the way the short lived price decline allowed for further opportunity. An offer for Anglo's part of the Samancor joint venture asset could further boost the share performance! "We are well positioned to achieve FY16 production guidance for all our operations and remain on track to reduce controllable costs2 by US$300M". Let's see if the next quarterly update reiterates & continues the same guidance figures but I'm very happy with the surprising & unanticipated short term performance. I was rather expecting a slower rerate to current levels and in the longer term to reach the spin-off valuation which is approximately 3 x the low of 42p. Time will tell... ATB

Thanks Togglebrush, Kerr started as an Iron ore analyst and quickly moved up the financial ranks through diamonds etc. at parent BHP Billiton. A talented BoD's here led by a talented & experienced leader. Thus far, they've exceeded forecasts with regard to production & debt reduction which is now at very low level. Very well structured now to focus on M & A if there are suitable high quality prized assets to be had but Kerr & team will be very selective this early on. On the negative side, commodities affected in S32 portfolio i.e. Manganese pricing will likely remain low as long as iron ore prices are depressed but is well balanced by diversification throughout its portfolio. I do however think that S32 will swing upward sooner and more rapidly than it's struggling & sluggish parent. - According to Kerr, the company would also consolidate its local Mamatwan and Wessels manganese mines in the Northern Cape under one management team in order to maximise cash flow and build flexibility into the mines and smelter. This follows the announcement of major restructuring at its South African manganese operations in September. It will continue with the operational suspension of three out of four furnaces at Metalloys, and will reduce saleable manganese ore production by 900 000t per year and reduce its headcount by 620 employees at Hotazel. “Our new configuration will ensure we are more competitive and far more flexible to match market demand. As a result Metalloys will return to a cash positive position at current prices, our sustaining capital expenditure will reduce by approximately 80% to $7 million and we will see a 24% reduction in ore costs to $1.90 per dry metric ton unit (dmtu),” Kerr said. A decline in realised manganese ore and alloy sales prices saw underlying earnings before interest and tax (Ebit) fall to a loss of $51 million from $13 million. It is taking a $97 million impairment at South Africa Manganese. It has also indicated that interest in buying out joint venture partner Anglo American’s interest in Samancor for the right price. ““I think they’re going to hunt for a lot in that space. In theory, this is the time to be doing that as the bigger companies that would normally be natural buyers can’t be at this time,” Just One Lap’s Simon Brown said. http://www.moneyweb.co.za/news/companies-and-deals/south32-maintains-offline-capacity-at-sa-aluminium-smelters/ Definitely looking strong & not playing the oversupply game such as Anglo, Rio & BHP & Vale... ATB

Probably not but adding a few more today with a long term view.

South32 Ltd (OTCMKTS:SOUHY) Announces Financial Results For FY 2015, EBIT Rises By 56% By Aaron Lyons on October 26, 2015 - The volume pattern is very proper for a corrective state, especially when the stock is building a base. The bulls can wait for their opportunity and take any breakout of the upper boundary as the entry signal. Financial Numbers - South32 has performed well over the past twelve months, thereby generating second to none revenues and sales figures. According to reports, pro forma underlying earnings before interest and tax for the year rose by 56% and touched an unbelievable $1 billion level. Overall underlying earnings of the company increased 41% to $575 million. - South32 reported PAT (profit after tax) of $28 million, better than last year’s performance. The senior management thinks that South32 can take its profitability to the next level by reducing cost. It seeks to cut down controllable cost by $350 million annually latest by the end of FY2018. Apart from this, South32 also plans to reduce sustainable capital expenditure by 9% to $650 million in FY2016. - http://www.financialstrend.com/south32-ltd-otcmktssouhy-announces-financial-results-for-fy-2015-ebit-rises-by-56-23252.html I maintain the entry at 64p on China jitters was a good opportunity and will continue to gradually build a long term holding here each time it drops below 69p with a 2-5 year view and dividend possibility.

Apology but Meant to say; and were pretty good with earnings up 41% (barring delisting write downs) and strong production results.

Financial year just ended June 2015 results issued today ad were pretty good. Currently rumoured they could be looking at Rio Tinto's Pacific Aluminium assets? Dividend Policy Bi Annual - Possibly this current 2016 financial year just commenced if they don't find a good growth asset to acquire or invest in? DIVIDEND: As indicated in the South32 Listing Documents, the Board has not declared a final dividend for FY15. The Group's simple capital management framework prioritises investment in safe and reliable operations, and an investment grade credit rating through the cycle. Once those core priorities have been satisfied, South32 intends to distribute a minimum 40% of Underlying earnings as dividends to its shareholders in each six month reporting period. "South32's strong balance sheet is a key point of differentiation and we value it highly. Our simple capital management framework and dividend policy ensures our shareholders will be rewarded as financial performance improves." Brendan Harris, South32 CFO

tawse57, I'm not inclined to agree with that assessment. The upside of S32 is that it's not dependant on trade with China unlike it's parent which is almost wholly tied to Chinese markets. Today will show another large impairement from BHP for that reason. If you observed the late declared trades after each close were bulky buys taking up some of the many smaller sells over the past weeks since touching 75p, one may be inclined to deduce that fund managers have been adding S32 to their portfolios. Yesterday's turmoil (panic) opened a new window to add with a long term view. I added at 64p which I believe is now well below valuation. The current commodity rout lows should make this somewhat interesting in a long term portfolio if one is not in any rush and felt that yesterday allowed opportunity? Are you looking with a view to enter/add at some stage? ATB