Diamondcorp Share Discussion Threads

[hpcg] 26/5/2015 12:47

They can grow a different company then, with somebody else's money. DCP is not going to become a significant mining company. The good thing about Lace is it has a known productive grade Kimberlite of substantial size which also produces large gem quality diamonds. The shallow 400 extension was a real bonus. The killer to the junior mining sector, whether that is gold, iron ore, copper or whatever is grade. There probably isn't another one of these to find so lets just monetize this one until it is uneconomic, and distribute the cash.

[keifer derrin] 26/5/2015 10:58

I'm not disagreeing with your wisecat - I think the management are doing a good job - much better than a lot of other companies out there - afren comes to mind (now that was a mistake). Which is why I think they could grow the company.

But, they said that they aren't currently looking for more mines, so I would still prefer a divi than a buy back. From my experience I've done better reinvesting the divi back into the company than from a company doing a buy back.

[wisecat2] 26/5/2015 10:42

There haven't been any new mines for years. Buying shares back will drive this price to great heights. Use your profits to invest in other companies. Management knows what its doing.

[keifer derrin] 26/5/2015 10:37

but as a shareholder I want the company to grow - and just buying back shares is not the best way imho.

how do companies like Cairn Energy and Tullow (admittedly they are struggling due to many factors) but I bought these companies when cheap and through expansion they grew and made a lot of money out of them (not as much as i'd like as sold out too quickly - but as they say a profit is a profit).

If they find the right mine and with hard work they could grow and make us all a lot more money.

With Lace, they gained extensive knowledge about mining and all the pitfalls. Also they'll have financial backup due to hopefully on going profits.

[wisecat2] 26/5/2015 10:32

well said hpcg agree with that. If you look at broker f/cs and fcf they will be buying a lot of shares back. They haven't ruled out divis either. Great model.

[hpcg] 26/5/2015 10:29

keifer - disagree on both, certainly on the concept of expansion. Success at Lace is a one off, anything else is much higher risk and almost certain to burn capital.

[keifer derrin] 26/5/2015 10:21

i found the rns boring......which is not necessarily a bad thing....

I didn't like the idea that they would rather do a buy back then giving out a divi....imho I don't think buy back really do much - at least with a divi you get cash in your pocket......but I would really prefer that they look at other mines to expand there operation with the profits.....

[wisecat2] 26/5/2015 10:02

Agree Tiger on the share price Nothing personal with Curly, if he made a profit good luck. But he said there was nothing good so there was a reaction. There is not much more the company can say at the moment but with a lot happening over the next few months todays price may look a bargain. I personally think the 11a find is very exciting. Have a good day

[granitetim] 26/5/2015 09:51

I saw no over reaction ..just MMs doing their thing on light volume ;)

[tiger60] 26/5/2015 09:42

Don't understand the reaction to curly's post. Everyone has the right to state their opinion. I continue to hold and the share price fall is an over reaction to what is an insignificant increase in the 'lose' column. But I think they have been a bit economical with the truth regarding statements around being 'fully funded' and the impact of the strike. Weren't the efficiencies found meant to outweigh the 4-6 weeks lost?

Anyway the investment case is compelling and the share price will bounce.

[riyazpatel] 26/5/2015 09:19

Agree boys sell up curly and I'm waiting to buy more :) buy on the dips

[jaf1948] 26/5/2015 08:47

I can never blame people for profit taking but with production so close, it does seem a strange thing to do.

[granitetim] 26/5/2015 08:46

In fact I just did thanks !

[granitetim] 26/5/2015 08:45

Curlly sell up then ..lol
I'll buy em from you :)

[curlly] 26/5/2015 08:38

wisecat
with a mkt cap of 35m ifeel the share price has got a bit ahead of it's self.

[wisecat2] 26/5/2015 08:32

Ticking all the boxes

[wisecat2] 26/5/2015 08:31

Goodbye Curlly

[wisecat2] 26/5/2015 08:29

Type IIa

These are the diamonds that you want to invest in, as they attract top dollar prices. Type IIa diamonds are excellent conductors of heat. They are truly special and unique as they make up about 1% of all diamonds. Chemically the purest form of diamonds, they are often referred to as “Golconda̶1; diamonds. This reference certainly contributes to their investment appeal. The Indian Golconda mine was the first mine discovered and was in operation from 400 BC to 1725. The mine unearthed many of the now famous, priceless and large diamonds such as the Hope diamond, the Dresden Green, the Darya-i-Nur, the Idol’s Eye, the Wittelsbach, the Tereschenko, the Nur-Ul Ain and the Princie. It is therefore no surprise that Golconda diamonds are highly sought after, desired and accordingly valued.

The lack of Nitrogen makes for a very valuable colourless diamond because the atomic structure does not easily absorp short-wave ultra violet light wavelengths. D coloured stones in this class often appear to be more colourless than other D grade stones and are sometimes unofficially referred to as “C” or “Super D” diamonds. If type IIa diamonds have an inclusion or defect in the crystal lattice, that allow light absorption to occur, fancy coloured Type IIa diamonds can be gray, brown, pink, pruple, yellow, blue or green (the two last colours are caused by irradiation).

[jaf1948] 26/5/2015 08:29

Not that good ? What else would you expect from a new diamond mining company that DCP has not achieved.I'm sorry but I disagree with you.

[wisecat2] 26/5/2015 08:28

Processing of K6 kimberlite recovered from the production level drives has commenced, including recovery of a 19.83 carat clear white gem diamond, being the largest gem diamond recovered from underground development so far and a 4.38 carat D Type IIA white. The Recovery Of A Type Iia Diamond Has Value Implications For The Entire Resource As It Means Lace Has The Potential To Produce Large, Very High Value Diamonds.

[curlly] 26/5/2015 08:21

Not that good.
Time to take a bit of profit.

[abacus23] 26/5/2015 08:20

Results out.

[liquid millionaire] 26/5/2015 08:20

DiamondCorp plc


AIM share code: DCP & JSE share code: DMC
ISIN: GB00B183ZC46
(Incorporated in England and Wales)
(Registration number 05400982)
(SA company registration number 2007/031444/10)

("DiamondCorp", "the Group" or "the Company")

FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014


Highlights

· The net loss for the year was £3.25m (2013: loss of £2.61m). The loss includes administrative expenses of £1.60m (2013 £2.19m) which have fallen for the third year in a row as a result of careful attention to cost control.
· Cash on hand at 31 December 2014 was £2.53m (2013: £2.22m) and total assets rose from £23.28m to £32.41m.
· Development of the Upper K4 (UK4) mining block is on schedule for commencement of mining operations in H2 2015, several months ahead of the original development schedule.
· Underground core drilling of the UK4 block has delineated 2.6 million tonnes of K4 (high grade) kimberlite above the 370m level, an increase of more than 2 million tonnes over the original Lace geological model. The final resource statement will require grade data from the bulk testing currently scheduled to be completed by the end of Q2.
· Processing of K6 kimberlite recovered from the production level drives has commenced, including recovery of a 19.83 carat clear white gem diamond, being the largest gem diamond recovered from underground development so far and a 4.38 carat D Type IIA white. The recovery of a Type IIA diamond has value implications for the entire resource as it means Lace has the potential to produce large, very high value diamonds.
· The installation of the 400 tonnes per hour underground conveyor system which will bring ore to surface for the life of the mine is on schedule for commissioning ahead of the mining ramp-up.
· Delays resulting from industrial action combined with a 25% devaluation of the South African Rand since the Lace project finance was arranged resulted in the Company needing to secure additional working capital to complete the development of the UK4 mining block.
· Post year-end, the Company signed a term sheet with Acrux Resources, a South African resources financing group, for a royalty financing facility for the rand equivalent of US$7m (£4.5m), which would more than adequately cover the working capital requirement of between £1.8m in the Company's base case to £2.8m in the worst case. At the date of this report, the royalty financing facility is in its final stages of negotiation.
· Diamond recoveries from tailings for the year ended 31 December 2014 totalled 18,354 carats at a recovered grade of 5.96 carats per hundred tonnes (cpht) against a budget of 5.00 cpht.
· Diamond sales for the year totalled 21,700 carats recovered from tailings at an average price of US$63 per carat, slightly ahead of budget. Income from diamonds sold has been credited to mine development as diamond recoveries are a result of fine tuning and testing of the processing plant ahead of kimberlite mining.
· The Lost Time Injury Frequency Rate (LTIFR) for 2014 was 0.72, slightly up on 0.55 in 2013, but still significantly below the average for mining operations in South Africa. Lace had two lost time injuries and 61,303 lost time injury free shifts during 2014.


A full version of the 2014 report and audited financial statements will shortly be posted to shareholders and available on the Company's website www.diamondcorp.plc.uk

[wisecat2] 25/5/2015 16:54

Tomorrow is the big day