Namakwa Diamonds Share Discussion Threads

[abtwo] 20/11/2012 10:15

Naked Trader,

Seems the share price is reflecting sentiments re the results?

[naked trader] 17/11/2012 21:19

No comments on the results!

[joeblogg2] 24/10/2012 10:06

A fair few sales today?

[ihavenoclue] 23/10/2012 13:43

Strange rise to 4.68p when you can buy at 4.45p

[onceabroker] 22/10/2012 13:36

From an operational perspective, the mine turned cash-flow positive in June 2012 and up to 25 June 2012 YTD production was 85,721 carats from 525,471 tonnes processed.

........................................................................

ABtwo, you had better inform the FSA, if what you say is correct, the company statement above in the IMS of 03/07/12 is fraudulent, call the company at the same time just to let them know your findings!! Unless you are wrong, but I can't see that, as you have more inside information then the CEO :)

Best regards

John

[abtwo] 22/10/2012 13:26

Yes, "...confirmation of costs..." :
With GemD's cost per tonne treated being US$17 using grid power and at a 3.3Mt pa throughput I cannot see NAD's Kao cost being less than US$25/tonne treated with royalty and selling costs added in I guess they are not cash positive. In addition at Kao the capital expenditure this year will have been high.

[ihavenoclue] 22/10/2012 09:22

Strange that this is down today but did allow others to buy in lower. I bought in @ 4.70p on Friday so no issues here. Would actually be nice to see it re-rate to at least a more fair value at the moment.

[onceabroker] 21/10/2012 18:39

Hard to guesstimate a value until accounts are published so we can have confirmation of costs and cash etc etc, all very important when obtaining a valuation. But at this stage, the appeal decision should help the share price above 9 and maybe into double figures.

AIMHO, DYOR

Best regards

John

[knigel] 21/10/2012 15:13

Thanks. Your share price target is?

[onceabroker] 21/10/2012 15:08

Well its been a excellent result so far, perhaps a appeal result that we were all expecting, but until it's in black and white, you never can be 100% sure. The appeal has now made this investment secure, and this security will filter through to the Sp over the following weeks. IHMO the contribution that is due to us from Kimberlite Investments Lesotho Limited, which is for their 12.5% holding of Storm Mountain Diamond, has been held back since April 2012, due to the ownership court case issues, now it is resolved, the amount of $6.26m will be paid to us, and paid pretty quick if they don't want us to take back the 12.5% under the terms of the agreement (much preferred option IMHO).

We have now had 2 of the 3 RNS's expected for October, the first two had been perfect, winning of the Appeal and Tender result, now we are due the most important and market sensitive RNS, the annual accounts, due anytime next week. These sets of accounts will show a whole new company from the previous company accounts. Since the company was formulated in 2006, it has never made a profit, and more or less we have shown a loss on the books with impairments for assets every year. This year could be the turning point, we know that Kao mine is currently cash flow positive since June, we know SA operation is currently cash flow positive, and we know group costs are down to approx $2.3m a quarter with a hopeful $9m year cost (down from $15m the year before). The production in the first 6 months at Kao have been below estimates, and this will impact the profit/cash for year end, but the production line has now started to produce a steady 25kct per month, which should give the market the reassurance that the next year's estimates will be met. Next year should have a production estimate of approx 300,000 ct, up from this year 120,000 ct.

If this type of production estimate is given, and i cannot see why it would not, then the EBIDTA and NAV will be changed. And it's here that the biggest leap in MC value can be achieved going forward, its this type of information that really makes the headlines and hits the Brokers desk.

So if anyone thought Friday was good, wait until the annual accounts are delivered!! In the meantime, we should see the base line Sp increase to take in the risk reward re-balance that started Friday

Best regards

John

[onceabroker] 21/10/2012 15:08

This was the tender summary at Kao:

quote

"The Antwerp tender continues to achieve excellent results for the Kao brand with 100 per cent sell-through achieved. Since January 2012, we have now sold a total of 138,172 carats from Kao Mine production in the ten tenders held to date, generating US$38.3 million in revenues for the Company."

end

That shows the earning potential of Kao, our year end is August to August, so we have only really had 8 months production at Kao (first 3 months were low production) with the former 3 months (Septemeber 2011 to Decemeber 2011) of production lost due to ramp up stage, and we have still managed to bring in $38.3m in revenue.

September 2012 to end August 2013 should see over $80m revenue from Kao alone as a baseline figure, that could grow depending on specials and diamond price increase as expected.

Best regards

John

[tez123] 20/10/2012 09:00

Namakwa Diamonds tender achieves $6.9 million in revenues



Latest news
Namakwa Diamonds tender achieves $6.9 million in revenues



Namakwa Diamonds' tender featuring rough diamonds from its Kao Mine, achieved revenues worth $6.9 million, for 25,952 carats of rough diamonds in 54 lots sold, reports suggest. The average price of the rough diamonds sold was $265.60 per carat, reports say.

The tender was managed in Antwerp through Fusion Alternatives from October 10 to 17. The company noted that the prices achieved were above expectations at the tender, reports add. The average size of diamonds featured in the tender was 0.28 carats.

The Kao Mine in Lesotho is operated by Namakwa Diamonds' subsidiary, Storm Mountain Diamonds.

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[ihavenoclue] 19/10/2012 16:31

moo ... is that better ? Although I am not a herd member

[johnwalton] 19/10/2012 15:54

40% rise and no noise from the heard ?

[tez123] 19/10/2012 11:35

40p less than 18 months ago.

In auction again at 5p.

[tez123] 19/10/2012 11:23

Watch this fly now.

[naked trader] 19/10/2012 11:16

Are they holding back until the outcome of the court case? I would be! Posted before I saw the above post!!!!

[tez123] 19/10/2012 11:15

19 October 2012

Namakwa Diamonds Limited (AIM: NAD)
("Namakwa Diamonds" or the "Company")

Batla Minerals Appeal Dismissed

On 30 November 2011 the High Court of Lesotho dismissed an action brought by Batla Minerals SA and its subsidiary, Toro Diamonds (Pty) Limited (together "Batla Minerals"), making claim to a 50% interest in the 62.5% of Storm Mountain Diamonds (Pty) Limited held by the Company. The costs of this action were awarded to the Company.

Batla Minerals subsequently appealed the decision which matter was heard by three Honourable Justices of Appeal in the Court of Appeal, Lesotho, on 12 October 2012.

On 19 October 2012 the Court of Appeal delivered its judgement dismissing the appeal of Batla Minerals in this matter, with costs. Namakwa Diamonds continues to hold a 62.5% interest in Storm Mountain Diamonds (Pty) Limited.

Batla Minerals has no further recourse in any court and the matter is now at an end.

For further information please visit www.namakwadiamonds.com or contact:

Namakwa Diamonds
Shore Capital
Theo Botoulas
[phone]
Pascal Keane
[phone]


Tavistock Communications

Simon Hudson/Simon Compton
[phone]


About Namakwa Diamonds Limited
Namakwa is a diamond resource group, which seeks to extract maximum value from the marketing and sale of Group mined and contracted production.

The Group's mining activities are focused on the Kao Mine in Lesotho. Operated by Storm Mountain Diamonds and its leading hard-rock mining team, with a proven track record in the construction and development of Lesotho's leading kimberlite pipes, the Kao Mine presents a 189Mt kimberlite resource of c.12.8m carats (c.4m indicated and c.8.8m inferred), with an additional 1.7m carats at a deposit level of confidence, in which Namakwa holds a 62.5% interest. The other shareholders are the Government of Lesotho 25% and Kimberlite Investments Lesotho Limited 12.5%.

The Group also maintains alluvial mining operations in the North West Province of South Africa and resource-development properties in the Northern Cape Province of South Africa and the offshore marine environment of Namibia.

-ends-

[abtwo] 19/10/2012 09:10

The recent tender price is still not high enough to cover the on mine costs.

[mr keeny] 16/10/2012 20:04

The hearing took place, as planned, on the 12th.

Judgement is expected within a few days.

[joeblogg2] 16/10/2012 13:23

Any news on Batla? thks

[earnestwipplethwaiteiii] 15/10/2012 09:08

ihavenoclue - if you could read and understand as well, you'd know that it says "at this stage". Shall I explain what that means in simple terms?