Ly Disrup Tech Discussion Threads

[tippingpoint] 22/6/2008 13:10

The research note is in the thread header above (first link)..

[the drewster] 22/6/2008 10:21

If I knew that, I wouldn't work for a living!

My guess is that the company, with such a small Market Cap will be taken out PDQ by a predator (probably one of the larger miners) if the technology proves up to expectations - the cost recovery model is so compelling!

As for a take-out price, then my own guess based on nothing more than experience and gut feel would be somewhere around 50p per share.

[spurberry] 22/6/2008 10:19

thanks drew,

And what do you think by year end is acheivable?

[the drewster] 22/6/2008 10:17

Spurberry, if you go the other DTEC thread, there's a link to a research note published not long after the initial IPO.
There are some complexities and risks (obviously) but they are well outlined in the document, together with the possible cashflows.

Very recently, the RNS form the company stated that the recovery rates were in line with management expectations. Given there has been no official news regarding those expectations being any different to the research note, then those of us "long" on DTEC are expecting a re-rating pretty much as soon as the rates and cashflows are confirmed.

We know they have resolved the power issues, we know they have everything up and running, and we know the diamond prices have remained very strong, so all in all, unless there are shenanigans going on, this wll trade much higher in the coming months.

EDIT : Just seen your new post - where companies do not want to invest in the DTEC technolgy, then management negotiate (and my guess is that several are ongoing) joint ventures, where DTECT provide the equipment and plant, and the profits form the diamonds recovered are shared (as per Grasfontein).

[spurberry] 22/6/2008 10:15

Sorry for being a pain as I have not read up on these as yet. I have printed of the links above and will read them as I fly to Scotland later today for work (the joys, not).

Briefly are DTEC a provider of technology for companies exploring for diamonds or an actual explorer?

When is the potential rereating news due (obviously if its a success).

Apologies again for the mandane questions.

[tippingpoint] 22/6/2008 10:01

Yes I think short term this is much better. In fact were I a betting man I would say back DTEC (in the hope the technology works for the large scale production just as per the smaller scale production) then roll the money into MRP (hopefully at a sensible price). A nice double - ooh err does that sound to much like gambling.

The £150mn value of potential diamonds is an estimate from the site and will be backed up with a SAMEC report in due course). I get the feeling its an estimate at the lower end of expectations - this is such a resource rich area.

If the LRUs work on the large scale production, and the expected level of diamonds is discovered then cash flow will be enormous and this will rerate. I think 20p is perfectly achievable and that's before you take into account the outsource potential off the Grasfontein JV (partly owned by Dtec) to other diamond mining areas.

Its very exciting imho

[tippingpoint] 22/6/2008 09:43

Fascinating background to grasfontein (and in header):

[tippingpoint] 21/6/2008 17:12

Have created a new thread to try and gather some more information together.

[tippingpoint] 21/6/2008 17:04

Time to update with a new thread - which I will populate with more material over the next week or so.

TECHNOLOGY (from website):

DiamondTech's diamond sorting technology has been developed to be a more efficient and cost effective alternative to the diamond sorting systems currently being employed in the diamond industry, the most common being a combination of a DMS in conjunction with either an X-ray or grease trap system.

The LRU technology uses an innovative technology based on the use of red lasers and a computerised optical recognition technique which automatically detects diamonds from run of mine material by identifying the wavelength shift, known as the Raman shift, when the laser passes through a diamond. Diamonds identified by the laser detection system are then automatically extracted by pneumatic jets into a safe which can only be accessed by authorised personnel.

Key Advantages:

- More efficient recovery process
- Small and type II diamonds (clear diamonds)
- Faster throughput
- Lower capital and operating costs for mining partners
- Enhanced security as human intervention minimised
- Transportability gives access to remote areas and quick set-up times


RESEARCH REPORT:

Which highlights that this company (Diamond Technologies) - could have diamonds worth over £150million in existing accessible resources. Then bear in mind the current cap of £7mn and the fact large scale production commenced last week and perhaps you can see the potential here.



ADMISSION DOCUMENT:



BACKGROUND TO PROSPECT:

Historical background to Grasfontein and the surrounding area (a fascinating history lesson with one fatal flaw at the end of the story!):



LATEST INTERIM REPORT:



DIAMOND PRICING SITE:





IMHO

[tippingpoint] 21/6/2008 12:20

Hopefully we will have first revenues announced soon also per 8.5.08 rns:

Diamond recoveries to date


The Company commenced mining operations using its exploration processing plant,
which operates two LRUs, at Grasfontein at the end of October 2007. Sample
mining operations have been focused on the tailings deposits on Grasfontein and
recovered grades and are in line with management expectations, supporting
management's confidence in the operational performance of the LRUs.


Recovered diamonds will be sold on tender during the coming months at the
appropriate time which will provide the Company with its first revenue.


Further production updates will be provided in due course as sufficient
production data from the new plant becomes available.

[tippingpoint] 21/6/2008 08:40

Wonder if affhouse still around

[tippingpoint] 21/6/2008 08:39

Drew

Indeed. But of course as a starting point the Grasfontein potential income is not within the reach of external parties so a potential £150million is a good foundation.

One would hope the patents issue is in hand to protect wider revenue potential.

I would be interested to know who was selling the blocs of shares early last week. Institutions are getting out of shares all the time at the moment - so its no major problem.

IMHO

[timanglin] 20/6/2008 11:26

Thanks The Drewster - that is the point i was making previously, that DTEC may need to enforce their IPR - however they do have a clear first movers advantage.

[the drewster] 20/6/2008 08:50

I couldn't agree more. If the figures in the broker note are even close (and management recently stated everything was in line with expectations) we are in for a rise of some significance as and when the cash starts rolling in.

Just keep an eye out for competition - if there's a machine you can make for £50k, then some fo the big boys will be able to duplicate pretty damn quick. No idea on the patents, or strength of IPR.

[tippingpoint] 20/6/2008 08:39

True - just thought it was a nice example of where the laser technology could kick in.

Given the potential revenues of the current Grasfontein JV to DTEC of +£150million, against the current market cap of £6mn, they are probably better keeping their nose to the grindstone on this project for now of course..

IMHO

[the drewster] 20/6/2008 08:37

If the technology is proven, there will be plenty of possible JVs.

When there's announcements like this, it must strengthen the negotiating position DTEC might have, but it may just be that the diamonds aren't there in this case, in which case why take the risk?

[tippingpoint] 18/6/2008 09:17

noooooooooooooo

whyyyyyyyyyyy

[humbugg] 18/6/2008 09:05

tippingpoint,
have you got the shakes?
;-))

[tippingpoint] 18/6/2008 07:27

The website conatins copies of broker report and a few other interesting docs. Had a look on the Vermyn site re report referred to in broker report but cant find it yet

This is looking like a potentially very hot stock imho

[tippingpoint] 18/6/2008 07:27

The website conatins copies of broker report and a few other interesting docs. Had a look on the Vermyn site re report referred to in broker report but cant find it yet

This is looking like a potentially very hot stock imho

[tippingpoint] 17/6/2008 22:38

Link to interims, interesting reading:

[tippingpoint] 17/6/2008 22:29

Drew - its a 14 year projected mine life at Gras per broker report above

Potential revenue about £11 million per annum

imho