Diamondcorp Share Discussion Threads

[iicb] 05/7/2016 20:19

sure we will find out soon enough tiger.
hitch - small time trade by the looks of it, nothing special.

[tiger60] 05/7/2016 20:15

So did the 2 trucks get refurbished by end of June? Did the work sub contracted out get completed at the end of June? Material events for such a small company......

[hitch19] 05/7/2016 19:48

Last trade? Another SVE buy or not?

[iicb] 05/7/2016 18:11

Fair enough hghg. Difference was the technology to go deep which wasnt available to the majors years ago, but it does make you wonder why in the hunt for diamonds they never thought about going back there.

CB

[darcon] 04/7/2016 15:14

Starvest plc invests GBP 25k (a nice vote of confidence even if the amount is small):

hxxp://irpages2.equitystory.com/websites/rns_news/English/1100/news-tool---rns---eqs-group.html?article=24634958&company=starvest

The amount invested represents 2.5% of Starvest's current NAV.

[hpcg] 04/7/2016 11:05

iiCB - I'm trying to be realistic. Whenever I look at a message board which says that a project which has been cast aside by a major will somehow be picked up by a major I know that participants are just throwing random ramps at the screen. There are two value drivers here - operational excellence and geologic good fortune. If the carat mix is better than plan, and operations are to plan then we are in a good place. The other thing to keep an eye on is diamond prices.

[hitch19] 04/7/2016 10:23

Are those buys @ 6.575?

[darcon] 04/7/2016 07:20

Last year we had a project update at the end of July. Will we get one at the end of July this year?

[iicb] 01/7/2016 12:56

Hpcg - starting to think I'm actually more optimistic than you!

[ged5] 01/7/2016 07:50

The two targets should have been reached as outlined in the post that ADVFN managed to lose and couldn't be bothered restoring!

I see Petra sold their 121 ct diamond for $6M so only about an sixth of our mkt cap. Pinks and lilacs should fetch more! :)

[ged5] 24/6/2016 09:07

No need to apologise mokhan2! There were lots of posts about the AGM and if you missed it others might have done also. It's sometimes useful to repost links.

As for the article, I thought the most interesting part was the paragraph about the dividends. Even that is highly speculative.

Put off buying yesterday due to the uncertainty of the vote. I can't see how it affects DCP - just marked down with the rest of the market. Noticeable that the European markets are down more than the FTSE so far.

Time will tell whether it was the right decision. Boris as PM. Maybe time to leave the country.

I have to agree with hpcg's earlier comments about being worried about the macro climate.

[hpcg] 23/6/2016 13:53

The Lace mine is too small for any significant player to be interested. It has to be run with very low corporate overheads. DCP could have been bought at any time in the last few years for next to nothing. Nothing more than journalistic and PI fantasy.

[mokhan2] 23/6/2016 13:50

Sorry Ged5 must have missed that post! Have been adding since 2011, not a huge holding but enough to make it relevant for my modest Portfolio.

Exactly, I remember seeing a forecast a few of years back that it would eventually have an EPS of about 5p which caught my imagination. A few things have happened since, fundraising etc and to be honest was not expecting it to be at this level at this stage; but the numbers are still enticing especially with potential for coloured/large stones. I wouldn't say no to a 50% dividend yield;-)

[iicb] 23/6/2016 11:12

we will see ged. i would be happy to see that elusive 10p once again.

[ged5] 23/6/2016 07:59

Thanks mokhan2! If you read this thread you would have seen that wisecat2 alerted us to this article in post 1884 on 15th June.

I gave the link in post 1986 and quoted part of the article in the header.

EDIT: I note from your profile that the potential of DCP would be of particular interest to you since you look for companies with value and dividend.
Do you hold yet or just looking?

[mokhan2] 22/6/2016 22:21

Interesting article shared on the lse board Today. V Bullish...

[ged5] 22/6/2016 10:30

I'm not so sure iiCB. With sales in July and August before the first sale after full production in September we should have a steady rise. As we will be in full production in the next week or two the probability of finding a diamond of high value increases exponentially.

So 10p a long way off? Maybe not today or next week but I would expect 10p to be a starting point for a much higher rise.

Last week we had a large amount of media coverage to coincide with the AGM which brought about some buying and subsequently the rise in share price This week the expected retrace came but on very few sells. This is quite healthy. With the right news the rise will continue.

Anyone else watching Billions?

[iicb] 21/6/2016 13:24

10p seems a long way off as yet

[hpcg] 21/6/2016 13:08

As the thread has discussed before a significant stone would make a huge difference at this stage of development, even more so given the tight cash situation.

[ged5] 21/6/2016 12:02

Also the sale of the polished diamond/s will probably be one fiftieth of PDL's mkt cap whereas it would be about a third of ours.

Just noticed the rise in the offer to 7.75p yet I can buy at a lower price (7.48p) than the last trade.

[hpcg] 21/6/2016 10:28

Petra reaction maybe an interpretation of the RNS. It didn't say fantastic news, this blows away our next results, but rather it improves the quality mix. The implication being carat size histogram is a bit below par?

[ged5] 21/6/2016 08:37

Petra Diamonds announced today they recovered a 121ct type 11 white diamond yet the share price is down. Strange how the market works.

I hope that when DCP find a diamond that size there will be a better reaction.

I'm expecting a slight retrace here this week.

[ged5] 18/6/2016 10:24

There were two points given in the feedback from the AGM by BobZim that I realised I didn't understand enough about to give answers to Hutch_Pod in an earlier post and hcpg in the above post.

3] As a rule DCP budget annually with a 15% contingency and 12.5% replacement capital.

4.1] There is no requirement to revisit their stated Aug/Sep16 cash flow targets.

Hutch_Pod asked "Ged5, do you recall what the 'stated Aug/Sept 16 cashflow targets' were? I simplistically just read that as not needing further funding."

Answer from PL "We have never stated cashflow targets. What we have said is the company is forecast to be cashflow positive from August."

hpcg question was more complicated so I was pleased to receive this clarification:-

"Each January we revise our budgets for the next 12 months based on actual costs in the preceding period, then add a 15% contingency."

So whatever the actual costs were in the preceding period 15% was then added to the Opex for contingency.

"12.5% replacement capital, means we take total revenue forecast for the year and expense 12.5% to the capital budget as an amount that would be spent on replacement capital"

In the feedback from BobZim:-

"Finally, I explained to PL my 'emissary role', and he passed over his full contact details making it clear that I/we could contact him at anytime if we felt a pressing need to do so."

PL was true to his word and replied within 15 minutes to my email. I think it is important that shareholders can communicate with the CEO and other directors. It can influence investment decisions so I am very grateful to Paul Loudon for clarifying these two points.

[hpcg] 17/6/2016 12:41

Ged - I do wonder at 12.5% capex replacement whether they are being too optimistic? Sure that does not include opex maintenance expense and 15% contingency is good but the equipment takes a beating. I also have to acknowledge that the conveyor means truck km per m drive have come right down. This is certainly an area to keep an eye on in financial reports. I presume unless there is evidence otherwise that we need availability (75%?) on both old and new trucks.