Cape Eu-eur Discussion Threads

[milner2] 19/6/2006 16:37

Had this on watchlist for a while now.
Gets below 160p and i'm in....

[wassapper] 19/6/2006 16:33

another 30p down and this might look interesting! How goes it guys?

[ianwc] 19/6/2006 16:22

ouch. bit of profit taking in this environment isn't that suprising.

[andy] 13/6/2006 18:07

Ianwc,

Someone sold 25K CAPE @ 180p after the bell!

[ianwc] 09/6/2006 15:56

wow that is an excellent article. But i would say that, wouldn't I!


Seriously though, the most interesting diamond play to list on AIM in a long time. Plenty of potential and one heck of a resource in the ground.

[cimbom] 09/6/2006 12:01

Excellent article just out on CAPE.Once market sentiments change this should really get moving.The site is free to register on and also access.



Cape Diamonds: A diamond company that actually has diamonds!
By Ian McLelland

The last few weeks have taught newly listed companies a harsh reality – market sentiment is a force not to be taken lightly. Cape Diamonds (CAPE) is one of a group of unlucky resource stocks that debuted on the market at possibly the worst time in the past 24 months. After a spectacular run in the first five months of 2006, global markets have turned incredibly volatile as investors try to gauge inflation, recent commodity volatility, and a new Fed chairman. Unfortunately for new listings the uncertainty means two things – seed money investors taking profits, combined with a lack of buying by new investors who are sitting on the fence. The share price chart of recent newcomer Brinkley Minerals (BRM) is perfect examples: a near vertical drop in reaction to the overlying market volatility. Market makers in turn read the mood supremly well and are not taking any chances, marking stocks heavily down on any selling. The recent correction is evident in many established stocks too, but many of these have had an excellent run and the recent drop looks moderate compared to a longer upward trend.

[ianwc] 06/6/2006 15:15

It's a very interesting company. The project looks excellent, and the potential is big. Unlucky timing on the listing though. No company at the moment can list and expect an warm welcome!

[andy] 06/6/2006 15:05

Cape Diamonds PLC

26 / 05 / 2006 - Commenced dealings on AIM.

Cape Diamonds PLC ("Cape" or "the Company"; stock code: CAPE), the South African kimberlite diamond mining company, announced on the 26th may 2006 the start of dealings in its Ordinary Shares on AIM.

The Company has raised £13 million before expenses, via a placing with institutional and other investors of 5.2 million Ordinary Shares at £2.50 per share. A further £3 million has been raised via a vendor placing, although these proceeds will go to the selling shareholders, not the Company.

Cape's prime asset is a 74% interest in the Elandslaagte property, an existing mining operation located some 75km from Kimberley, the heart of South Africa'a mining industry. Elandslaagte has a history of producing quality gem stones; between 1896 and 1992 over 30,000 carats of diamonds were recovered and individual diamonds have ranged in size up to 400 carats. The remaining shares are held by Wheatfields, a Black Economic Empowerment ('BEE') group.

The Company intends to invest in modern processing equipment to increase the current output to about 250,000 carats of diamonds per annum. Since July 2004, Cape has invested in developing the infrastructure and open pit operation at the mine. Ten distinct areas of diamonds resources have been identified to date.

The funds raised will also be used to repay creditors, to make final payments due as part of the acquisition agreement for Elandslaagte and to provide working capital.

Cape also has access to other projects, principally in the Republic of South Africa, that the Board believes may offer attractive opportunities for the acquisition of additional diamond mining assets.

W.H. Ireland is the nominated adviser and broker to the Company.

Manie Silver, Chief Executive Officer of Cape Diamonds PLC, commented:

"We are delighted that UK investors clearly appreciate both the world-class nature of the resource at Elandslaagte and its long-term potential. Following the successful placing, we now have the funds needed to boost diamond production to the levels required for the project to become self-financing."


For further information, please contact:

Cape Diamonds PLC

Masoud Alikhani, Executive Chairman 020 7408 1181

W.H. Ireland Tim Cofman/Katy Birkin 0121 616 2101

Bankside Consultants Susan Scott/Michael Spriggs 020 7367 8888


Number of Ordinary Shares in issue immediately following Admission = 32,821,053