Member Info for Valency

MrPositive, I'm in Dubai so let me know if you ever need a cold one or simply need a hand when in the vicinity. I do tend to travel a lot and am in the UK perhaps 7-10 times a year? Thanks for emailing PL in regard to phase 2 funding with emphasis on a published prospectus which would make participation more widely accessible. I will do the same as I believe it's important for all shareholders to be able to participate. ATB

Hi Tozerk, I'm sorry you encountered similar difficulty participating in the placing & feel the same frustration. As per my reply to Banksman earlier today, the drill rig is the item which should be most time consuming from a repair point of view as it will be repaired by Sandvik off site. Everything else can & should be completed before the rig is returned in preparation to commence ramp up. Just note that before any remediation/repairs can commence an agreement with labour must be concluded as well as for the BRP to move forward. MisterPositive set out a good timeline in post on 14 Jan and is worth a read. I agree that phase 2 fundraising will take place likely early April and if successful, suspension could be lifted shortly thereafter. Estimated ramp up to full production will commence gradually to reach 30K tons/month over +-4 months. In anticipation of phase 2 fundraise (£3-5 million), I'm gearing towards @4p (nil attached warrants) in the form of a subscribed rights issue or similar. ATB

Thanks Banksman & wishing you & your the very best for 2017. Hope you get the email sorted and recall my issues with Microsoft last year. Since you asked previously, I am not able to visit the mine any time soon. I live & work in the Middle East (past 15 years) and am fortunate that on occasion I can marry business & pleasure down south as happened last Nov. A business trip can pop up on short notice but there is nothing for the foreseeable? I'll keep you updated if anything comes on the radar... It's good news that damage is confined to underground 310m working level & not the Plant & conveyor! Underground roads require resurfacing as 1st priority to remove the drill rig for rewiring/repair at Sandvik. Underground electrical systems will need rewiring as well and there general care & maintenance will be carried out in preparation of ramp up. The drill rig will likely take the longest as 6 weeks for repair was quoted from memory but all of this is of course 1st subject to an amicable labour agreement being reached.

LSE server was down at the time I arrived home last night. Very encouraging news but disappointed about the difficulties in participating. AMCU labour negotiation next and it will take quite a bit of finessing to reach an amicable agreement. Some thoughts on this later... ATB.

MrPositive, sincere apology for erring in haste. It's ploudon@diamondcorp.plc.uk If you don't mind me asking, who are you dealing through? I'm with HSBC Inv. Direct (nominees) hence the struggle. Shabby & Spondilocks, as ridiculous as it is, holding through a nominee account does not offer full services & there is a substantial difference between a "direct" account and "nominee" account. The latter entails shares held through a stockbroker on behalf of individual investors. Most nominee accounts do no allow individual investors to participate in IPO's, placings & DR's in order to reduce costs and the administrative process is handled on behalf of investors thus individual investors holding a nominee account for e.g. do not appear on a respective company share register etc. Read the following with emphasis on the last 2 paragraphs. http://www.londonstockexchange.com/traders-and-brokers/private-investors/private-investors/about-share/how-hold-shares/how-hold-shares.htm

MrPositive, you can contact PL at ploudon@diamondcorp.co.uk I'm pretty peeved off that my broker can't facilitate warrants. It's a great way for LTH's to average down and even better entry level for adventurous new investors that have weighed risk/reward. I don't look at labour negotiations with a light hearted approach and one has to acknowledge that they took a bad rap particularly over Xmas period & many having families to support. Reality is though that just as creditors & bondholders had to make concessions so too must labour or face the worse fate of liquidation which is a Cul-de-sac for all. Limited bailout funds through phase 1 does not allow much wiggle room for the AMCU. It should be of primary concern to all parties that restructuring succeeds which will consequently also benefit the vast majority of workers at the mine. The mine has never been overstaffed & if any, perhaps only a handful face retrenchment?

Jaf, Panmure G deal primarily with corporate clients & I think many individual/private investors are encountering similar issues as I have with their broker/nominees? I spoke to Tom Salvesen yesterday & again very early this morning. Indeed a very helpful chap & sadly after my 2 day deliberation, HSBC Inv. Direct were willing to assist in acquiring placing shares but turned out they couldn't facilitate due to the attached warrants. I guess it's the price one pays to hold offshore? I was advised it's possible to open a private account with Panmure Gordon to facilitate similar future events but clearance/approval takes time though. All I can do for now is position & anticipate phase 2 fundraising @ full price 4p?? in the form of a rights issue or similar. MrPositive, thanks for the support & don't mind helping when able but I'm inundated at present hence my very brief reply to Banksman on Wednesday in respect of damage at the mine which as per PL was confined to the production level. The plant & conveyer is not affected. A two phased approach serves to de-risk in that phase 1 (greater risk hence attached warrant) allows for remediation/repair work to be completed in preparation for ramp up as well as making provision to include labour agreements iro lost remuneration & some severance packages to reduce the work force during maintenance & BRP. It's also worth considering limited funding (phase 1) limits the bargaining power of the AMCU. It basically boils down to - "this is what's available so come to the table or face liquidation proceedings scenario" which may likely result in years rather than months before any pay-out can be made to labour. Once a labour agreement is reached & the working level & rig repaired the BRP restructuring process can progress in anticipation of ramp up resumption. Phase 2 funding is much more likely to succeed with the above boxes ticked. ATB

Banksman, apology for the late reply but it's a busy time at present. PL emailed me in regard to the placing and those wishing to participate are advised to contact their brokers. I am still awaiting a reply from both my brokers & will advise of any luck. I took the liberty of enquiring about your concerns as regards the extent of damage & PL's response stated that "damage is wholly confined to the 310m production level" + the drill rig which was located on the same level. The plant & conveyer etc. were/are not affected by flood damage. Apology for the short reply & will check in later....

Trust everyone had a peaceful festive season & time to get back to the grindstone here. bluebottle_uk, yes I estimated the 29th Dec as publishing date for the restructuring plan as prescribed in the timeline of the act which mentions within 25 working days after appointment of the BRP. Pg. 8 paragraph 11 refers. http://www.werksmans.com/wp-content/uploads/2013/05/Basics-of-Business-Rescue-guide.pdf Dec/Jan is always quite a disruptive period to conclude business & the timelines are prescribed simply as a guide under the act thus can be delayed by approval of the court upon submission of the BRP's request/recommendation. The last update 19 Dec advised - a) IDC have agreed to a standstill in terms of it's rights until completion of the BRP. b) Laurelton Diamonds, Inc., a lender to DiamondCorp Holdings Limited, has agreed to roll up its interest until 1 November 2017 or the completion of refinancing (whichever is earlier) and defer capital repayments until 1 March 2018..... etc. c) Rasmala has agreed to extend the repayment of the balance of the Facility until 30 March 2017. (+-GBP410K) d) Given regulatory and timing requirements of the JSE Limited with respect to calling a formal meeting of bondholders, it will be early January 2017 before a decision is reached. Proceedings & progress seem positive and the current delay is due to JSE regulatory requirements required to notify bondholders to convene a formal meeting (est. early Jan 2017) so not much longer to watch tumbleweeds roll by until the next update on proceedings/negotiations. On a different note - Richemont and peers rally after strong report Jan 12 2017 By Clark Schultz, SA News. •Richemont (OTCPK:CFRHF, OTCPK:CFRUY) rallied 6% in South African trading after the retailer reported FQ3 sales above estimates. •On a constant currency basis, sales in Europe were up 3% vs. -3% expected by analysts. Asia Pacific sales were up 10% vs. +3% consensus off strong demand in China (outside Hong Kong) and Korea. •The report could be giving a lift to some names in the luxury and jewellery sectors. Tiffany (TIF +2.8%), Luxottica (LUX +0.9%), Burberry (OTCPK:BURBY +0.8%)....... https://www.richemont.com/files/press/company_announcement_12012017_l478xk2c.pdf Need a few more of the large manufacturers/retailers to report seasonal earnings to get a broader view but certainly a good start if others follow suite with results. ATB

Apology for not posting recently but been on work travel since 14 Dec & seems another hotel X-Mas may be on the cards. Wishing everyone good health & prosperity for 2017 and a merry X-Mas.

Hi Jaf, the following official public holidays apply though productivity is probably lowest between 23rd Dec through 3rd Jan as most folks are away during the coinciding summer holiday. •Friday 16 December 2016 - Day of Reconciliation •Sunday 25 December 2016 - Christmas Day •Monday 26 December 2016 - Day Of Goodwill •Tuesday 27 December 2016 - Public Holiday Public holidays South Africa 2017 - •1 January 2017 – New Years Day •​2 January 2017 - Public Holiday. In regard to DCP discussions the BRP restructuring plan should be published within 25 'business' days of appointment according to the following link (Refer Item 11 pg.8) - http://www.werksmans.com/wp-content/uploads/2013/05/Basics-of-Business-Rescue-guide.pdf Considering the use of the term "business days" and factoring in weekends & public holidays, it seems the 29th Dec is a likely cut-off date for the BRP to have published a restructured plan as prescribed by the act. Sooner than that is perhaps possible subject to the level of complexity, amount of creditors and employees involved? I recommend a thorough read of the link as it also provides good info as to how public interest score is calculated (Q6 pg. 11) and provides guidance in respect of the adoption vote structure (Q3 pg.19). ATB.

Morning Banksman, not local though I have local business interest. A shamen might be helpful, lol. Ouch..., even anticipating softer prices for smalls and weaker year end pricing still doesn't make this sale palatable but I wonder how much of a buyers opportunistic element played a role knowing LDM's current position compared to previous sales? It does however show the vital contribution a few quality larger stones make to sales averages at the top end on a non linear pricing scale. Fortunately it's not the 1st tango and we know the achievable range with solid production. It also seems a bit odd that all stones larger than 10cts tendered were poor quality containing inclusions? Does the Rasmala 5000cts collateral batch contain the select gem quality from the full production parcel prior to suspension and a resultant weaker assortment offered for tender? Considering previous Lace tender results the latest seems out of kilter & is not representative of fair average mine value when viewed in perspective.

Apology & correction - I stated 17 Nov and should read 17 Dec!! I.e. Thus we can anticipate some preliminary direction to be forthcoming on or before17th Dec and (within a further 10 days) a vote on the restructuring plan by affected parties should thus take place on or before 27th Dec.

Back home in the dust bowl & trying to get back into the groove. Alligan, I have to agree, Rio are elephant hunters and although they have a strong interest in colour stones & perfected the marketing strategy of these at Argyle, they are a large mine, large volume type player so I just can't see Lace fit their strategy & portfolio. I suppose one should also consider limited diamond resources globally as well... It does however bode well in terms of their long term outlook for the sector as does the recent $1.45B sale of Lukoil's Grib mine. http://www.diamonds.net/News/NewsItem.aspx?ArticleID=58299&ArticleTitle=Grib%2bDiamond%2bMine%2bSold%2bfor%2b%25241.5B Perhaps an update next week on the S.A. tender/sale? I'm interested to see if local performs better in terms of 'smalls' as it could be less influenced by the short term Indian market liquidity. PL did mention better numbers of +8ct stones and it's interesting reading SGD27's article SP Angel/Proactive Investors note - "... there are a number of pinks and purples in the parcel indicating to us a potentially higher value for these stones and greater value for the sale." Let's see what the sales results reveal? The BRP Daniel Terblanche, Deloitte & Touché was appointed 22nd Nov & using the Business Rescue Process legal Timeframe, the 1st meeting (within 10 days of appointment) with creditors & employees would have convened prior to or on 2nd Nov. "Within 25 days after the BRP's appointment a business rescue plan will be published in which the way forward in regards to the company's affairs is explained. It is in terms of the business rescue plan in which the obligations of the company will be restructured which could include deferment or cancellation of payment obligations towards creditors, investments etc." - Thus we can anticipate some preliminary direction to be forthcoming on or before17th Nov and (within a further 10 days) a vote on the restructuring plan by those affected parties should thus take place on or before 27th Dec. X-mas & seasonal public holidays may influence the limited timing of such a vote as regards the BRP's "restructured plan" so perhaps it could be held ahead of 24th Dec? If that be the case then at least some indication of future & direction (dull or bright) before X-mas. ATB

Business Rescue Process - Chapter 6 of the Companies Act prescribes two possible ways of commencing Business Rescue Proceedings. The first and most common procedure is a voluntarily resolution by the management of the company. The management of a company signs a resolution in terms of the Companies Act and applies to the Companies and Intellectual Property Commission to commence business rescue. The application is accompanied by an comprehensive affidavit setting out the reasons for the company's financial distress as well as its prospects of being rescued. Once the application is granted by either the Court or the Commission to process as well as the protection afforded by the Companies Act is the same. Within five days after the application is granted, the company must appoint a licensed Business Rescue Practitioner (BRP). The BRP will then arrange the first meeting of creditors and employees within 10 days after his/her appointment. At this meeting the creditors will be informed of the status of the company and will receive proof of claims from the creditors. Within 25 days after the BRP's appointment a business rescue plan will be published in which the way forward in regards to the company's affairs is explained. It is in terms of the business rescue plan in which the obligations of the company will be restructured which could include deferment or cancellation of payment obligations towards creditors, investments etc. Within 10 days after the business rescue plan is published a second meeting of creditors will be held in which the business rescue plan is considered by all the parties affected by it, being mostly creditors. If creditors vote against the adoption of a business rescue plan the court can be approached for assistance if the vote against the plan was unreasonable. A balance is therefore struck between creditors and the company. The rule of thumb in measuring the reasonableness of a business rescue plan is based on the return a creditor would receive if the company were to be liquidated immediately. In example, if a creditor would only receive 25 cents in a Rand it would be unreasonable for that creditor to vote against a plan in which a return of 30 cents would be received. Once a plan has been adopted the management of the company as well as the business rescue practitioner proceeds to implement the adopted plan at which stage the business rescue process comes to a close. All the creditors are being bound by the terms of the business rescue plan and will not be able to proceed with legal proceedings unless the company itself fails to comply with the terms of the business rescue plan. Depending on various circumstances the process usually takes about three months. http://businessrescuesa.blogspot.co.za/p/business-rescue-process.html

Note - For clarification, although EW and our CFO were easy candidates to point fingers at, our CFO's cash calls were spot on and she remains in her appointed position!

It's probably not a bad time to be out of production as the Indian Government's invalidation of INR1K and INR500 notes is having an adverse effect on melee/smaller stones which is anticipated to continue in the short term. http://www.diamonds.net/News/NewsItem.aspx?ArticleID=58241&ArticleTitle=Indian%2bLiquidity%2bStress%2bImpacts%2bFirst%2bRenard%2bSale - “We saw strong interest in our product assortment, with 153 diamantaires attending the tender,” said Matt Manson, Stornoway’s president and chief executive officer (pictured). “Pricing met or was close to our expectations on most items.” However, many of smaller and lower-quality items were withdrawn from the sale, with a view to offering them at a later stage, Manson said. The Indian government’s decision this month to invalidate INR 1,000 and INR 500 notes had a detrimental effect on demand and prices of such goods, he added. - Most seasonal buyers have already filled orders so softening demand & prices are evident thus I don't anticipate Lace month end sale to outperform as last tenders in the year generally perform weaker.

@Daison "So it looks like the 'act of God' may well be one of benevolence rather than malevolence after all" - A spate of bad luck & risky financial contingency saw DCP backed into a very tight corner else there would've been no need to accept those malevolent Rasmala terms. Call it divine intervention/justice or whatever one chooses but the temporary 'special circumstances' qualifying the business for rescue as a result of the freak storm was a once off stroke of luck that had to be embraced. Coming out of business rescue should see the company in a much stronger functional position which would definitely be in shareholders interest incl. that of all stakeholders with the exception of Rasmala objectives. Management cannot function effectively when they've been shackled by a dictatorial entity whilst other shareholders are held at ransom. The respite allows time to restructure & presents an opportunity to thwart Rasmala's power grab. They're the likely short term loser here, albeit in their long term best interest and you can be sure that it is not in anyone's beneficial interest to see the company's demise, least of all Rasmala. In that respect, I'd say DiamondCorp and consequently it's shareholders are in a much stronger position than previously leading up to suspension. Webmoor, I agree wholeheartedly. PL knows this business inside out and did not seem desperate to sell lace on the cheap at shareholders expense when he could easily have struck a self enrichment deal for himself & the Bod's. Whilst we all make mistakes, integrity is much rarer and I have no reason to doubt PL's sincerity & concern for shareholders. I'm aware PL is travelling but I will try to ascertain whether production may resume earlier during the administrative restructuring period subject to equipment availability but I have reason to believe it won't due to specific objectives? E.g. Early resumption of production reduces pressure on creditors to renegotiate/restructure and places the company back in the same tight position it was before besides, there are other legally beneficial elements that become effective tools during such an "administrative" period. ATB

Jaf, "I don't suppose on the subject of India you have any suggestions how our batsmen can play better against spin"? Believe me Jaf, It'll make me happy if none of this turns out to be spin! Holdon, according to PL the tender will continue. Re Rasmala, my views on the deal were made clear to PL and it pretty much pans out that the act of God and subsequent embraced opportunity to file for business rescue really renders the deal before the fact as immaterial under present circumstances and [they] have already had to agree to 'undefined' concessions. Although both tranches had already been drawn down & the GM meeting & vote (a few hours after official administration) was simply going through the motions when you think about it. Rasmala's teeth have effectively been pulled forcing them back to the negotiation table in line with their rear end small creditor position if you get the idea. The loan (capital amount) stands but it's original structured terms are no longer effective pending renegotiation which most likely includes the attempted 'legitimised' equity theft. Unfortunately I'm unable to verify full Rasmala payment ahead of due date as so much ground was covered. Webmoor, baring in mind a complete reset/restructure is under process which could ultimately take on multiple likely scenarios but simply as an example; We may see various new equity holders such as Laurelton & perhaps even partial IDC debt converted to equity bringing them on-board as shareholders and effectively resulting in substantial debt to equity ratio reduction IF negotiations succeed. Have a good night & ATB

I asked PL about the month end diamond tender? As I suspected, it will continue and the results will be updated when available. I also asked about the pumping progress & water levels? Current water levels are well under control in fact PL confirmed that the 310m working level is dry & if we had access to functional/rewired drill rigs, production could currently resume. Errm, that won't happen & the embraced option to restructure debt offered through a merciful act of God will continue for the entire 60days, of that I'm quite sure. A savings grace perhaps? It's the result after proceedings that will determine our positions when compared to "old" existing positions which remains to be seen? The way I see it is that we are locked in until the process is complete and it's impossible to allay fears and provide a diamond studded result but we will have to trust the process and take some consolation for now from the fact that DCP (however opportunistically) managed to snatch back control from Rasmala's singleton drum beat. As Alligan stated, a successful restructure will see a stronger, leaner, less indebted DCP & I think it's reasonable to feel more upbeat after understanding the reasoning behind the chosen path. How we got here is now history and I think from a company and shareholder perspective, not making use of the opportunity to restructure when fate played it's hand would have been perhaps terminal. I can't say I'm long nor short because we're locked in but I am much more positive after the meeting. Jaf1948, hopefully you got the gist in the above as to why mining is unlikely to resume any sooner... I am going to relax now and will provide some info later on the subject of India & diamond market developments as well as contractors when time allows. ATB