Namakwa Diamonds Share Discussion Threads

[zangdook] 20/1/2012 07:16

I didn't realise Jarvirne was a Ukrainian oligarch.

Jarvirne Limited is indirectly wholly owned by Eduard Prutnik.

[baffins] 12/1/2012 12:22

South Africa - North West Province

"a 37.46ct diamond was discovered on the Company's operations on the South East Node, which is expected to realise significant value during the January 2012 sales process".

Significant eh, that sounds promising and we know this area produces very high quality stones such as the following previously reported:

26.74ct D Type IIa at $44,000 per carat

7.53ct rare vivid orange at $176,713 per carat

17.32cts stone with a sale price of $6,627 per carat

I should imagine this recent 37.46ct diamond find maybe a $0.4m stone at the very least and if this is the case it would be in the region of $10,600 per carat or maybe much more.

All looking very promising indeed to lift us off the floor.

PS: Also worth noting that if Kimberlite Investments Lesotho Limited do not start honouring its obligations to meet its portion of the funding requirements as an ordinary shareholder of Storm Mountain Diamonds they may find that their 12.5% stake of Kao is taken away.

So far NAD have shouldered all costs which has been $66m (as at 31 December 2011) plus an additional US$8m to be spent by Namakwa during Q1'CY2012 making a total of $74m. Of this $74m Kimberlite Investments Lesotho Limited percentage payable to NAD is $9.25m under the terms of the agreement in place.

[onceabroker] 12/1/2012 10:37

JOHANNESBURG (miningweekly.com) – With its Kao mine processing plant ramping up to its 500 t/h nameplate capacity and the first 3 900 ct of diamonds to go on tender in Johannesburg in January, LSE-listed Namakwa Diamonds said on Thursday it expects to generate positive cashflow from its flagship Lesotho mine in the first quarter of this year.

Following significant restructuring at its North West province alluvial operations, the mining division is now primarily focused on the Kao mine, which will start commercial production in the first quarter of 2012.

The miner expects to produce about 200 000 ct of diamonds in its current financial year.

The initial production of about 3 900 ct is to be tendered in Johannesburg this month, with the miner planning to present up to ten yearly tenders to dispose of its diamonds. This production consists of predominately small diamonds with an average size of 0.21 ct. The diamond size profile is expected to increase on future tenders, as more hard rock ore is processed.

Operated by mining contractor Storm Mountain Diamonds, the mine holds a 186-million ton kimberlite resource of about 13-million carats, with four-million carats in the indicated category and about nine-million carats in the inferred category. Namakwa holds a 62.5% interest in the operation.

All significant capital projects have now been completed, with a few remaining elements scheduled for completion in February.

The company reported in its interim management statement that it had drawn on capital of about $66-million as at December 31, 2011, 100% funded by Namakwa, with a further $8-million to be spent during the first quarter of this year.

Namakwa said it had secured a $40-million, two-year, secured-term loan entered into with Jarvirne. Some $25-million of the facility had been drawn to date and an additional $6-million to meet January capital and operational payments. A $19.5-million trade debt owed to Jarvirne had also been capitalised.

The miner also reported significant progress taken to reduce corporate costs from $15.9-million in the 2011 financial year, to a target of $9-million for the current financial year, with further savings projected for future years. As a result, the company disposed of its rough and polished trading inventory at cost for $6.36-million.

Meanwhile, the miner's South African alluvial diamond mines in the North West province were restructured, resulting in the operation breaking even before redundancy costs.

The workforce was reduced from 461 to 120 people and an additional contractor added to the wider project area. Grade control and efficiencies continue to be a key focus, with operations suspended on several areas.

The operation produced 6 478 ct during the period, in line with the budget for the rationalised project area, and 5 408 ct were sold at an average price of $627/ct.

This included 11 special diamonds above 10.8 ct, including a 37.46 ct diamond being recovered after the period end and which would be sold in the January tender.

Further, in the Democratic Republic of Congo, the mine's portfolio of alluvial mining and kimberlite exploration assets sold in September for a deferred consideration of $6.25-million to be settled through a five-year offtake agreement.

Namakwa said the High Court of Lesotho dismissed the claim of Batla Minerals SA and, its subsidiary, Toro to a 50% interest in Namakwa's 62.5% shareholding in Storm Mountain Diamonds, with costs awarded to Namakwa. Batla intended to appeal the ruling.

"We are pleased to report a positive set of results for the first quarter of our 2012 financial year, following a difficult start, with management executing on Namakwa's stated strategic goals to restructure the business. The company continues to provide a unique entry point for direct exposure to the Kao mine in Lesotho, a significant kimberlite resource on the world stage," Namakwa CEO Richard Collocott said.

Mining analyst Liberum Capital said in a statement that it expected Namakwa Diamonds to deliver profitability by 2013.

[onceabroker] 12/1/2012 07:39

time to re-rate!!!!


Management is taking major steps to move the Group towards profitability, with the generation of positive cashflow from the Kao mine expected in Q1'CY2012 and a significant reduction of Group corporate costs for FY2012.

Lesotho: 500tph plant in final stages of commissioning. Ramp-up to achieve nameplate capacity and Phase 1 commercial production is underway, with cashflow positive operations anticipated in Q1'CY2012

South Africa: North West Province alluvial mines restructured. Continuing operations breakeven for the period before redundancy costs. c.6.5Kcts recovered during the period, at an average price of US$627/ct (Q1'FY2011: US$687/ct), including 11 special diamonds above 10.8cts each. A 37.46ct diamond was recovered after the period end and will be sold in January 2012.

Corporate Costs: Significant progress taken to reduce corporate costs from US$15.9m in FY2011, to a target of US$9m for FY2012, with further savings projected for future years.

[onceabroker] 05/1/2012 20:15

i sent a email to the company to confirm some dates etc, here is the reply: (not long now before we see a spike and upward trend)


Dear Mr. xxxxx

Many thanks for your email. Our IMS is anticipated to be released on Thursday 12 January 2012.

The commissioning and ramp-up of the 500tph plant at Kao to Phase 1 commercial production continues in accordance with our revised timelines (as published in the November prospectus) and the tender of the first parcel of Kao diamonds from production will take place at the independent Poggenpoel Tender House in Johannesburg between 18 - 27 January 2012 (www.poggenpoel.com). Results of the tender will be published once collated the following week.

We value your continued support of and interest in Namakwa Diamonds.

Kind regards
Ryan

[onceabroker] 04/1/2012 10:28

IDEX Online Research: Jewelry Demand Remains Robust In U.S. Market
04.01.2012
Jewelry shoppers are ignoring the uncertain economy, weak housing market and high unemployment in the U.S. market, Ken Gassman writes at www.idexonline.com. September jewelry sales, both for the total industry as well as specialty jewelers, posted strong double-digit gains.
Full details about the September sales are available to IDEX Online Research subscribers and IDEX Online members here.
While much of the jewelry industry sales increase – up nearly 15 percent for the month of September as measured by "dollars through the cash register" – is the result of price inflation related to polished diamond and precious metals prices, unit sales are up by an estimated 3 percent.
These sales trends tell us several things:
- Jewelry demand seems to be price inelastic, at least at the current price levels. Message to jewelers: "Don't get between a jewelry shopper and her desire for jewelry: she wants fine jewelry, and she's willing to pay for it."
- Since unit sales are up, fundamental underlying demand for jewelry is clearly strengthening.
- Most jewelers are reporting more transactions, though the average transaction value is often slightly lower than in pre-recession days. This confirms that more jewelry shoppers are in stores buying jewelry.
Here's the preliminary jewelry sales report for September 2011:
- Total U.S. Jewelry Sales +14.6 percent
- U.S. Specialty Jewelers' Sales +21.7 percent
While these numbers seem overly optimistic, we noted the same thing about August numbers. The government has provided revised data for August and prior months, but the percentage gains did not change dramatically. The IDEX Online Research sample of jewelers shows composite gains in the high teen range, rather than the nearly 22 percent gain reported by the government. Either way, though, jewelry sales are strong.
Here are some high-level trends that we believe reliably reflect jewelry sales during the month of September 2011:
- Specialty jewelers took market share from other merchants – discounters, mass marketers and online sellers – who sell jewelry.
- Watch sales moderately outpaced jewelry sales. The LGI Network data reflects this same trend, and its numbers are close to the government sales numbers for watches.
- Year-to-date jewelry industry sales are up by about 12 percent, as measured by dollar volume ("dollars through the cash register"). This is comprised of a unit sales gain of about 3 percent, along with a 9 percent increase in jewelry prices due to price inflation related to higher diamond and precious metals prices. That's why so many jewelers say that, despite solid dollar sales, it doesn't "feel" like jewelry sales are up strongly. We note that specialty jewelers' year-to-date sales are up by about 13.5 percent, which means that their unit sales are up by more than 4 percent.
- The jewelry industry – especially specialty jewelers – took significant market share ("share of wallet") from other retail categories.
- Sales of branded jewelry, as compiled by the LGI Network, an NPD Group company, showed a notable decline of about 3 percent in September. This indicates that consumers continue to seek a fashion look at a value price; brands are less important than "the look."
Outlook for Jewelry Demand Remains Positive
By all counts, American shoppers should be spooked: the politicians in Washington have proven themselves dysfunctional; global financial markets remain in turmoil; Wall Street protests seem to be building in intensity; governments across the globe are being challenged; the European debt situation seems to be worsening; and, key U.S. economic indicators remain stubbornly in "recession" territory. Events of this magnitude normally cause consumers to tighten their purse strings.
In fact, the consumer sentiment indices are at low levels.
However, we know this: there is little correlation between consumer sentiment and retail sales. Most credible economists ignore consumer sentiment indices when making their sales forecasts.
Why are American shoppers still in the stores buying jewelry? The reasons seem qualitative:
- There is significant pent-up demand for jewelry.
- Consumers are tired of hearing recession rhetoric from the mass media talking heads.
- Two old adages come to mind:
"Americans are born to shop"
"When the going gets tough, the tough go shopping."
Earlier in the quarter, two major public companies reported interim sales results through the end of September; these sales trends confirm that the strong sales gains are continuing.
Based on nine months of 2011 sales data, the U.S. jewelry and watch sales could grow to as much as $70 billion for the full year ending December 2011, a gain of about 13-14 percent over 2010 sales levels, based on newly revised data from the Department of Commerce.
We continue to remain skeptical of the Commerce Department's numbers: a gain in the mid-to-high single digit range seems much more reasonable to us. This would yield jewelry sales in the $65-66 billion range for the year. Further, over the next couple of years, we believe that jewelry sales gains will settle in at about 4 percent or so annually, assuming that inflation moderates to historic levels.

[onceabroker] 02/1/2012 10:18

next company IMS is scheduled for 12/01/12, this should hopefully provide us with a good update on KAO ramp up production figures, and maybe a confirmation of a January sale of diamonds. a good start to 2012 would be welcomed by all here.

IMHO, the next 4 months, which should include IMS, diamond sale, appeal result, notification of change from ramp up to full production at KAO, continuing cash generating at SA and half yearly report, will all be a catalyst for share price increase from these low levels that the market makers have held onto for the past 2 months. time to reap the rewards.

best regards

John

[baffins] 19/12/2011 11:58

No surprises that Peter has not shown up. All mouth just as I suspected. What with his recent humble pie eating absence and his previous comments regarding already tabled T/O nonsense which was all completely false, I think it is very safe to say he is not worth paying any attention to at all.

Strange that he was chomping at the bit last Wednesday stating that he "cant wait" to "have a Rns at 4pm from the company confirming no appeal was made" but since the company released an RNS on Thursday 15th of an appeal by Batla/Toro (as I correctly predicted on 6 Dec 2011 - 15:12:28 - 528 of 594) our humble pie eating Peter is nowhere to be seen. Not a single whisper from him.

[onceabroker] 15/12/2011 13:17

binladin

Nice name, bet you get compliments all the time,

Where's your analysis to back up the 5p worth statement? or are you just throwing figures in without thinking first, if so, why 5p? why not 1p /2p etc. etc.

best regards

John

[binladin] 15/12/2011 11:21

only worth it at 5p...

[onceabroker] 14/12/2011 13:52

baffins

noted the Jarvine shares, to be honest i took it of the barc platform, which is usually quite good at updating, albeit not this time.

it is always quite good to have only around 200m shares in circulation after Jarvines chunks, and also 60 to 70m held by other II's. which leaves approx 130m in circulation. its enough liquidity without the sharp movements of a larger PI held share company.i grabbed a few more a little while ago, was hoping to get in a little lower for the top up, after appeal notice confirmation, but it looks as if the MM have already priced it in.

Blackrock have hopefully disposed, and someone may have gained, lets hope for a RNS soon

best regards

John

[onceabroker] 14/12/2011 12:43

Time to eat humble pie peter



On 30 November, 2011, Judge Lyons of the High Court of Lesotho issued judgement in the application that Toro Diamonds Lesotho (Pty) Limited had lodged against Namakwa Diamonds Limited for joint ownership of 62.5% of the shares held by Namakwa Diamonds in Storm Mountain Diamonds (Pty) Ltd.
Judge Lyons dismissed Toro's application, with costs.

Toro Diamonds believes the Judge erred in his decision.

A notice of appeal has been lodged against the judgement that was delivered on the 30th November, 2011.

It is anticipated that the appeal will be heard in April 2012 in the Court of Appeal in Maseru, Lesotho.

About Batla Minerals SA
Batla Minerals is a French resource investment company listed on the NYSE Euronext (Marche Libre: MLBAT) The company has active diamond operations in Lesotho.

New ventures are being sought across Southern Africa and include mineral deposits in the energy, precious and base metals categories.

Contact Information
Johannes van der Walt (27) 21 880 1615 (SA)
Michael Reynolds (27) 21 880 1615 (SA)
Arnaud Vercruysse (33) 67 738 6672 (France)

www.batlaminerals.com

[peterj5] 14/12/2011 11:05

the 14 days appeal period expires at 4pm today in lesotho, and its 4pm in lesotho at 2pm our time, so you have 3 hours left to salvage your reputation mr baffin

we will probably have a Rns at 4pm from the company confirming no appeal was made, cant wait

[christianf12] 13/12/2011 16:30

BAM BAM will try and talk the share price down as he is buying. He does it on every thread he posts on, take a look:

[bam bam rubble] 13/12/2011 16:25

The CEOs $500,000 bonus is abhorrent considering the share price performance this year and Kao is more than a few months late. Apologists for the Directors who have presided over this debacle are not to be trusted and may well be associated with the board whether directly or indirectly

Mr Collocott joined as CFO with the share price around 40p and was shoehorned into the CEO role due to the other execs leaving in what can only be described as disgrace with one-after-the-other departures. Heno Kruger and Con Fauconnier quit in April, Chief Operating Officer Dries Janzen stepped down in July followed by Jacques Conradie, CEO Nico Kruger stepped down in September followed by Chairman Hans Smith and Dirk Van Staden

[baffins] 13/12/2011 16:15

BAM BAM, despite your disagreement of the "notion" the fact remains year 1 interest worked out to be approx 4.7% as I have detailed to you. If you have a problem with that I suggest you take it up with the company as they also described it as the following "US$40m, 2 year secured loan facility made available to the Company, with first drawdown of US$5m being available to the Company by 9 September 2011 and first year interest payable, in respect of the facility, by way of the issue and allotment of 9,000,000 shares following first drawdown"



As for the delays regarding Kao I consider them as minimal as they are only a few months late (originally planned for September 2011 but the small matter of restructuring and refinancing the company got in the way) and I have been very happy with recent progress since the arrival of the new CEO, Mr Collocott. In fact I think all have been very pleased with the performance of Kao and the new CEO hence the reason for a $500,000 bonus to the CEO for his swift commissioning of Kao.

You obviously are not in the bulls camp so I suggest you take you deramping and scaremongering attempts elsewhere.

[bam bam rubble] 13/12/2011 15:52

A strange notion to think the 9 million shares to cover year 1 interest repayments means its interest free. By the same notion convertible loan notes are free money.

Has this company met its production forecasts or timetables previously? How many times have they delayed start-up at Kao already and to what extent can we trust the forecast revenue figures considering the company's poor track record to date?

[onceabroker] 13/12/2011 15:33

baffins

A excellent prognosis, i would summarise that the way this new management team have acted so far with prudent and cash cutting, i can also see a chunk of the loan paid early if we have the funds available by year end in 2012, which would indeed enable reduced interest payment over the 2nd year of the loan.

I wonder what the market cap would be for a company with so little debt to revenue ratio then

best regards

John

[baffins] 13/12/2011 15:17

No error at all onceabroker. NAD effectively have a interest free run (due to the 9,000,000 issued which could be called "year 1 interest" as previously highlighted) from now until September 2012 as this is when the year 2 interest becomes payable.

During this 8 month interest free period monthly revenues from both SA and Kao COULD generate $3,560,000 (8 x $445,000 including 50% costs) and $15,500,000 (8 x $3,100,000 = $24,800,000 x 62.5% NAD % (costs included)) therefore making a total of $19,060,000 which COULD be used to pay off part of the principal amount before any of the interest payments kick in.

The remaining (year 2) payable interest would still be $9,6000,000 (should the full $40,000,000 be taken up) despite payments of the principal already made therefore leaving $20,940,000 ($40,000,000 - $19,060,000 previously paid) plus the interest payments making the balance payable $30,540,000 of which NAD have 12 months to pay.

Do the sums again for the ongoing 12 months (Sep 2012 to Sep 2013) using the production figures which have been estimated and you will see that the facility and its interest are manageable with a little touch of positive upside. Also bear in made no inclusion of "specials" or ramp up from SA has been accounted for which would all count as additional funds over and above stated This is why it is good to see SA production at a minimum with a view to ramp up and also high value stone still being unearthed.

As previously mentioned, it could all go the other way if production targets are not met, carat values decrease of even if aliens land and set up camp on Kao which would put a complete stop to all operations

[onceabroker] 13/12/2011 14:49

baffins

a slight error on the numbers above as pointed out by someone on iii, we have the deduction of interest on the loan in the second year IF it goes to the full repayment date.


24 months now reduced to 20 months starting from January 2012 until August 2013:

SA = 20 months revenue at $890,000 per month = $17,900,000 EXCLUDING "specials" (which could easily bring in very significant revenues as seen before at over $1,100,000 per stone) and with costs at an absolutely HUGE 50% = $8,900,000 towards the facility

Kao = 20 months revenues at $6,100,000 per month = $122,000,000 MINUS costs at $3,000,000 per month = $60,000,000 making $62,000,000. Now, NAD only have 62.5% of Kao reducing this to $38,750,000

So, in the 20 months period STARTING JANUARY 2012 NAD COULD have bottom line numbers of $8,900,000 (SA) + $38,750,000 (Kao) = $47,650,000 which would pay off the entire $40,000,000 facility and its associated interest well BEFORE the due by date to actually save unnecessary monthly interest payments and still leave a little remaining.

AND $47,650,000 minus 9.6m interest payments = $38,050,000

A lot of variable to plus and minus those figures, but a good working platform from you today for numbers crunching

best regards

John

[onceabroker] 13/12/2011 11:36

peter

Can we leave this long running appeal saga behind us, and get on with looking at NAD's future instead. whether the appeal comes or not, its not going to make much difference IMHO, the original deliberations from the judge were overwhelming, and if BATLA does appeal, it would in my opinion be taking it on a chance basis, they have nothing much to lose except a few extra $ fees, and everything to gain if the appeal went their way.

It could be a very good start to 2012 for NAD, we have a sale in January 2012, and a IMS due in January 2012 also. But the main benchmark for me is the half year results scheduled for April 2012, this is where we could finally see a full set of figures for production and costs for SA and KAO. not a long time to wait in the contexts of things

I'm also very please with the new managements communications program, they seem to be very professional and are in my opinion fully aware of the share price status, and are doing more then enough to highlight the company progress to date.

best regards

John