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Real-Time news about Dimension Res.S (London Stock Exchange): 0 recent articles
|orvil: morning FLOJO-I think we will have positive news on the placing, it will depend on the dilution factor of the overall deal v the potential that will determine the immediate direction of the share price. I remain confident that longer term this will prove to be a little Gold mine, but we will need patience.Political instability in some of the areas outlined for prospecting, will mean that initial concentration will be exerted in the one nearly complete, and this should provide much needed cash flow.|
|orvil: Duss- In TRT the original deal was for the founders of the reversing company ( a private company ) to be paid in money raised at the placing by the listed company. However, due to the incompetent way the reverse was managed the TRT share price plumetted and the private company agreed to accept shares at a hugely discounted value. This was all due to the fact that an agreed rate was not confirmed and the shares suspended in good time. As you know a group of rebel shareholders including myself raied £4m in 10 days and blocked the reverse. I am sure the same will not be the case with DMR.|
|dusseldorf: So you two buyers stop buying and the share price collapses?
basically, yes. The market makers hold virtually no shares due to illiquidity and the bermudan registration (sometimes the MM's will not settle your trade for 30+ days due to 'paperwork' - DMR is not CREST compatible yet). If people buy the price goes up, when they sell it goes down, regardless the MM's don't like holding any quantities of DMR so they over react to persistant pressure on either side..try getting a quote for £20,000 worth of stock and see where that gets you
Given DMR 'appears' to be heading nowhere the interest is low, some people have been selling, however having had discussions with the director that indicate otherwise I'm happy to sit and watch. If all goes according to plan, I will not buy any before reverse acquisition (as I have agreed this with the director due to access to sensitive information). If the proposed reverse does not go ahead I will be once more free to trade...
Long-termers will already be aware who the other restricted trader is..|
|chartsie: So you two buyers stop buying and the share price collapses?
Suggest you check in to a mental institution. Ask for a twin room.|
|bbbb: duss: if confidence in the acquisition increases gradually along with the share price (but without overtrading), the acquisition price might be more favourable.
a steady pace gives a chance for a little profit taking to be absorbed by investors with confidence in the outcome, without excessive volatility.|
|bbbb: there might be scope in any reconstruction for a distribution of existing assets
to existing shareholders, perhaps certificates entitling participation to any
royalty flow from the quarries. that would leave an interest in the holding structure (which may have value in itself) to be utilised by any mooted acquisition and as an additional 'bonus' to holders.
I remain confident that messrs moritz & hoodless have not invested in this obscure entity as an exercise in random waste of unneeded money, time and brain power.
my study of similar puzzling anomaly situations over the past 50 years suggests
that what doesn't seem to add up sometimes does - big time.
a case in point was the breakup by tiny rowland of one of his little-known companies - coronation syndicate - with a distribution to holders of two classes of share of another company, worth several times the coronation share price at the time. Having tripled their money, many original holders then diposed of their coronation shares, missing out on a several hundred bagger as it became a shell for a south african fund manager.
yes, several hundred times the original investment, though that would have involved subscribing to several subsequent right issues over about 10 years.
of course, this is not in that league, coronation had at least three prior cycles with a high ten time the low, and big occasional dividends over 40 or so years. and tiny was in his way a genius.|
|dusseldorf: You can see why people bought into the initial DMR story - this I dug up from 2000:
Although the financial position of the company is not yet in profitability as of the last year, the prospects have now significantly brightened. A sudden turn in the sales prospects for granite resulted in an exclusive contract with a Taiwanese client, Yu Long Enterprises Co. Ltd., for the Company's Zwartmodder Cape Red granite. The contract is for a five year period commencing on 20 February, 2000; with deliveries starting at 50 cubic meters per month and increasing to 500 to 600 cubic meters per month. The total value of this contract is estimated to be in excess of US$16,000,000.
Dimension Resources Limited ('Dimension'), through its wholly owned operating
subsidiary Natural Stone Industries (Pty) Limited ('NSI'), has reached agreement in principle with North West Quarries CC to acquire a Rustenburg Black granite quarry situated near Brits, North West Province, South Africa.
The initial purchase price is Rand 2 million (£125,000), with up to an
additional Rand 2 million (£125,000) payable when certain production targets are met. This is expected to be within six months of start up. The agreement will be conditional, inter alia, on the transfer of a valid mining licence to NSI.
Rustenburg Black granite is the best known of all granites traded and processed
in the world, and is internationally accepted and used. The material only occurs in South Africa and some 95% of the production is exported from that country.
Under an additional agreement, North West Quarries has agreed to undertake the
quarrying operations on behalf of Dimension. The intention is to build up
production to a level of approximately 300 cubic metres per month, operating for 11 months per annum. At current pricing levels Dimension expects a margin of between US$ 100 and US$ 200 per cubic metre, giving a rapid pay back of the
The fact is that none of these reported contracts actually turned into anything tangible - so those who bought into the Hoodless Brennan story for placement were in a word 'shafted'.
In 2001, also spotted this statement:
The placing of ordinary shares to raise #1 million in the second quarter of 2000 brought about a near doubling in the number of shareholders to almost 900. Since that time the directors have noted with concern the sharp reduction in the share price. To help to counter this it is intended to issue trading updates four times each year rather than half yearly. The Directors are also investigating the possibility of re-domiciling the Company into the United Kingdom, as it is felt that the inability to trade the Ordinary Shares through Crest, due to the Bermudan domicile, severely restricts liquidity.
Again, another false promise regarding trading updates....and as for being re-domiciled in the UK, we are yet to see.|
|takdeer13: Firstly an apology to Dusseldorf who runs the 'proper' DMR thread on ADVFN and has just moderated me from that thread due to my discussions with another poster.
I have no doubts whatsoever of Dusseldorf's sincerety of his views about the Company. I completely disagree with his views but that is neither here or there.
My discussions were with a blatant ramper on his board who has used numerous identities over the last year to try (in vain) to push up the share price of the Company. I assume it is because this person has built up a large (by DMR standards !!) position but is now stuck nursing a big paper loss.
The need for this person is to push the share price up towards the 1 penny mark in order to make an exit but his efforts over the last year have been completely nullified by the share heading southwards !!
Anyway IMHO the share is worthless and should be avoided at all costs.
I write as an ex shareholder (for my sins) !!|
As you put it far more honestly a couple of weeks ago. While Smiler is ramping DMR across other threads and other boards using a variety of aliases and holding long imaginary conversations with himself it looks as though their is interest in DMR and that helps you.
On that basis I would welcome Smiler and ban everyone who asks difficult questions.
I guess you have made the moral decision that while someone lies and cheats to your benefit without you being directly involved it is OK.
BTW...the derampers seem to be here as a direct result of your little helper spamming all the other threads with DMR price forecasts and blatant lies...but i guess you knew that.|
|smiler27: Just in case anyone forgot where it all began!
Dimension Resources Ltd.
Report updated: 2nd July 2005
A group of entrepreneurs, with the requisite expertise, wants to start quarrying in South Africa. They of course establish their business in the obvious place, Bermuda; and as the next obvious step go to the Isle of Man where they succeed in arranging to purchase, for some £15 million, a company which owns a modern and well equipped stone tile cutting and polishing factory about 300km north of Cape Town. The consideration was satisfied entirely by the issue of 49 million ordinary shares, accepted at 30p per share. In a previous transaction, Dimension had issued some 9 million shares at 15p to raise £1.3 million, and advanced the net sum to the company which it was later to acquire, the purpose of the injection to secure quarrying and processing equipment, further extractable resources, and working capital. It was intended that the main initial activity of the company was the carrying on of quarrying processing, fabrication and sale of marble, bowenite and granite; the first two products are based at the company's processing plant, said to be substantially automated and producing tiles and larger strip materials to customer specifications; the granite was meant initially be sold in blocks pre a further investment to establish a separate processing plant. The technical consultant's report was reassuring in respect of both the quality and volume of the resources; his valuation of £45 million was a useful counterweight to the £1.5 million loss recorded by the company's newly acquired subsidiary between 1995 and 1997. The stone was largely earmarked for the Far East, but the sudden crisis, which then gripped the region, caused market to shrink and prices to fall. Declining to sip this witch's brew, the Dimension board mothballed the quarry and sought marble supplies instead. This exercise was only partly satisfactory, but the company busied itself in other ways, notably by way of a five-year contract to provide red granite to Taiwan, total value $16 million. The original 30p share offering was packaged into a 150p unit which contained 5 shares and has a hoped-for sweetener of a warrant which was exerciseable at 30p per share on 1st December 1998, 40p on the equivalent 1999 date and 50p on 1st December 2000. Since this is now academic, post a capital reorganisation to reflect the fact that the share price dropped below its nominal value, another £1 million was raised at 6p per share in April 2000. The purpose was to finance the Taiwan contract, although Far Eastern recovery is stirring hopes of a restoration of the original prospects of exploitation of the considerable reserves - assuming that the architectural fashion for the use of Dimension stone is still running strongly. The accounts for December 1999 showed a pre-tax loss of £447,000, but an ungeared balance sheet, the finances buttressed of course by the post balance sheet issue. By the time of the June 2000 interim accounts, the loss was shaved to £141,000, and the Chairman was stressing that the granite contract alone was capable of returning the group to profit. Well, it might have done had disputes not ended it. But with two new contracts, and two quarries now commissioned, the company was motoring again. Alas, the commissioning costs engendered a thumping December 2000 loss. Meanwhile, the trading history has driven the share price inexorably down. In June 2001,the vastly experienced Chairman, Brian Moritz, bought 500,000 shares to bring his holding up to 2.2% Interim results for the six months ended June 2001 which followed, showed an operating loss of £160,459, compared to the £146, 548 for the same period of the previous year, on turnover of £139,267 against £102,419. The company has always seemed to be on the brink of commercial success as its sumptuous assets stream into the world market, but has constantly been frustrated by this or that; and now needed a bit more money, which it was planning to raise in penny-ante form. For the cynically minded, an October 2001 announcement of an exclusive contract with a leading Italian stone company for the sale the company's "Cape Rainbow" granite, probably meant that the mooted capital raising was imminent, and lo, £225, 000 was raised at 1p per share on the first day of November. The company, its share price then ebbing close to the point of invisibility, spent £125,000 on a black granite quarry, same amount being payable when certain production targets are met. Come July 2002, and its more of the same, we are afraid. Preliminary results for 2001 showed a loss of £429,836, not at all far from the prior year figure of £487,471, although, said Mr Moritz, the trend is towards an improvement in trading. As yet, no revenues as yet had shown from the contract with the Italians whilst the aforementioned January acquisition is conditional on the transfer of a valid mining licence, as yet not received although it, like the improvement, remains imminent. A similar situation can be found in Vrendendal, South Africa, where the company has agreed to purchase a marble deposit, conditional on the receipt of a mining licence. Meanwhile the factory in Vrendendal, lacking a suitable source of marble, would be standing idle were it not cutting floor tiles for the extension to Cape Town airport. The company lost just over £100,000 in the six months to June 2002. However, for the brave, a statement that things are on the up, and that projected sales of bowenite alone will usher in the long awaited black ink, will be a buy signal. But if they were, it was the wrong signal as the December 2002 figures - produced in June 2003 - illustrated, another £300,000 loss. But die-hards will seize on to the fact that the debt-free group has no demand problems, only those of production, and the fact that the widening gap between the rand and the dollar has been responsible for much of the most recent losses. In August 2003 £300,000 was raised at 0.5p per share. The June interim figures which followed showed a £65,000 loss. By December 2003 the placing of 33 million more shares at 0.5p raised £165,000. It was June 2004 before the 2003 loss, £500,000, was slipped across the table to the waiting shareholders; August before a distress flare went up, as production was first disrupted then adversely affected by the strength of the rand. Urgent paring was coupled with the urgent quest for new capital. But what we got instead was the cessation of African operations, crushed between the dollar and the rand.
A rocky ride indeed. Bring on those diamonds, gold, uranium???|
Dimension Resources share price data is direct from the London Stock Exchange