Diamondcorp Share Discussion Threads

[tiger60] 20/8/2015 19:16

Unfortunately it was a late reported sell on 18th Aug.

DCP have to help themselves.

[granitetim] 20/8/2015 18:43

Looking like they accomodated the 1.3m buy trade today

[tiger60] 16/8/2015 15:55

At a guess we will probably get an update of sorts in September but in this news vacuum at the moment we are at the whims of the wider market.

The China devaluation has hit commoditiy producers and luxury goods makers hard. The mighty Glencore are sufferring and relaiant on their trading arm to make up any profits with copper, coal and most metals seeing big percentage falls, along with Oil.

Even Tullow might breach 200p - an amazing thought only a few months ago.

The rough diamond market hasnt been immune to this reversal although in Diamondcorp's case I believe the upcoming resource update will more than offset any price decreases (although I do believe cost assumptions on their model are proving a little optimistic). It would be nice to see the remodelled cahflow predictions, costs and margins (and of course a clearer indication of prod date which in my humble opinion will be around Dec from the scant clues we have been given (JAF it is a guess, just sharing an opinion!))

But like all investors that have been around a bit know one thing is for sure - it is cyclical. This time a commodity recovery maybe 2-4 years away but it will happen. The problem now though is with both the States and Uk not far away from raising interest rates and a currency war on the horizon the case for equities is not at its strongest. Although China's behaviour over the next few weeks will have an impact on that - continued devaluation will see the chances of a rate rise this year decrease.

One indice that has stayed strong is Japan as money flowed into support Abenomics. Lets see the figures tonight but if it approaches the 21,000 barrier and falls back it is a great selling point. (Again China being the wild card. Any sudden cash injections will ruin my short but you take your chances)

Diamondcorp will survive and hopefully florish but it will have to do so off it's own back. In other words, deliver on what we believe to be a truly sizable asset at incredible margins. It is facing external headwinds but it has the potential newsflow to blow right back and more.

I think 10p and a touch below is not that unthinkable but there are a lot of supporters out there and in the long term this will deliver back many times. I will hold and wait.

[dor54] 09/8/2015 10:17

For those interested in mining companies check this Interview with Charles Gibson: Head of Mining at Edison Research

[iicb] 08/8/2015 23:29

From all I hear so far, i think this mine could have some excellent diamonds in it, i look forward to production just to see what they find.

[tiger60] 07/8/2015 21:29

So you agree. Good.

Now for the next one. How do we measure if there is a 4 week delay to production when the company refuse to give a date or even a month as to when it will start?

[jaf1948] 07/8/2015 20:35

Of course I agree that company information impacting fundamentals should be declared via RNS.

But how do you know that any company information was given to this individual unless you ask him what ACTUALLY happened. Were you there ? No. Was I there ? No.

You are so mired in your dislike of the company and the BoD that you are happy to believe whatever bits of information you can glean that put the company in a bad light.

I have tried to help you tonight but you won't listen. That is why I have stopped posting on here.

[tiger60] 07/8/2015 20:28

Answer the question

[jaf1948] 07/8/2015 19:59

No, I am not back - I am just trying to help you out. You have to email the chap and he will tell you the whole story, not what has been posted second or third hand on here.

[tiger60] 07/8/2015 19:54

You are back ...

I read it and as usual you misunderstand. Company information impacting fundamentals should be declared via RNS and not to individual investors on a site visit.

What is your problem with this viewpoint?

[jaf1948] 07/8/2015 19:35

Tiger,Let me help you. If you go onto the LSE board and send an email to the chap who went to the mine, you might learn the facts.Or you can just continue to moan.

[hpcg] 07/8/2015 19:22

I cringe whenever I hear LSE quoted - it mostly seems to be inhabited by linguistically and financially illiterate losers. However I have been watching the JSE listing, which is literally closer, and I imagine well informed, and that has been gratifyingly stable.

[tiger60] 07/8/2015 18:46

It is great to hear they tell a bloke who rolls up to the mine rather than by RNS but.....

[wisecat2] 06/8/2015 15:24

A nice gentleman on the LSE website visited Lace mine recently and stated that they have found more Type IIA diamonds since the original disclosure. WOW

[iicb] 04/8/2015 18:24

and actually a bit disappointed re-listening to it. Think he doesnt like giving bad news, not that he has much in the past year, so we can let him off on this occasion.

[iicb] 01/8/2015 23:48

He seems distracted, not nervous.

[tiger60] 31/7/2015 19:35

Personally thought the interview performance was poor. He seemed flustered.

So he seemed to suggest production close of year or start of next! So from 6 months ahead of schedule, to four and now saying two. How is that a four week delay? And how can he say we are still 2 months ahead of schedule without giving concise dates?

Basically this is not a 4 week delay, they are being very coy on the planned production date but it way past the Sept date hoped for. Yes it is mining, yes it is AIM and yes it is SA but like the interviewer suggested there should be contingency planning and this should be inbuilt into the project plans.

The separate 4 week delay on the conveyor belt is to actually to get the parts, they then need to be fitted.

All of this surely must of been known prior to the placement? That the resource update was not ready, the conveyor belt would miss its commissioning date and that production would be delayed - surely this should of been presented to potential investors prior to deciding on whether to participate or not?



It would be nice to know their cash balance and monthly cash burn to see how long the placement funds would last if delays stretch on. A question he dodged.


And why do euan worthington and paul laudon differ so much on NPV. At the 1-2-1 interview on dcp's website ew states 39p whilst PL is saying 25-30p - can someone confirm I am hearing them correctly?

I know it comes with the territory but for the people saying the management is great let them deliver something first. As to shareholders being a top priority to DCP well the dilution was 15% and we were able to get 6% in the open offer - we lost out, we were diluted. This was not DCP mamanagement looking after you and me. This was a call for working capital to finance the extra months with negative cash flow.

I still hold, I still hope and it is another waiting game until October update. I thought this one would be different.

[ged5] 31/7/2015 13:32

As usual some nervy hesitancy when discussing the delays because of safety but then the bullishness when talking about the diamonds.

"...exceeding our expectations in terms of quality of the diamonds that we're recovering there really are some beautiful gems coming out"

Link to video also in the header.

[ftseproactive] 31/7/2015 12:41

Proactive speaks to CEO Paul Loudon...

[ged5] 31/7/2015 10:24

Thanks jimbob

Just to make it easier for others to read:-

"DiamondCorp (LON:DCP) – BUY: Lace update
Market Cap: £44.6m; Current Price: 11.9p; Target Price: 16.6p
Minor development delays that have no material effect on our price target
Development work on the Upper K4 kimberlite remains close to schedule though the underground tunnel development is progressing slower than planned for safety reasons associated with the fractured ground located close to the old workings.
The K6 development kimberlite continues to be processed and the higher grade K4 development kimberlite is now also being processed.
The conveyor belt tunnel is now connected from the production level to the surface. The belt is 99% fabricated and 75% installed. The final installation has been delayed due to additional safety protection systems required by the Department of Mineral Resources.
The slower development rate means costs are averaging R44,193/m compared to a budget of R37,000/m
Forecasts updated, BUY rating and price target maintained.
NORTHLAND CAPITAL PARTNERS VIEW: We had already factored in delays to the start of production in our forecasts and price target as they are very common at this stage in a mine’s development. As a result, we do not need to adjust our forecasts or price target for DiamondCorp based on the delays. However, the increased development costs, resulting from the delays as well as, additional capex associated with items that are expected to enhance the mine economics have lead us to make an increase to our capex expectations for FY15. This has led to a minor downgrade to our forecast net debt position but has no material effect on our price target of 16.6p per share. Importantly the recent £5.27m raised in a placing and open offer should provide the Company will all the required funds despite the increased development costs."

[jimbobjames2002] 31/7/2015 09:06

www.proactiveinvestors.co.uk/columns/northland-capital-partners-view-on-the-city/22685/northland-capital-partners-view-on-the-city-stratex-international-and-diamondcorp-22685.html

www.proactiveinvestors.co.uk/companies/news/109538/diamondcorp-pleased-with-stone-quality-at-lace

[jimbobjames2002] 31/7/2015 09:05

A few links:

[...]

[...]

Also:
Panmure's Alison Turner reiterates a 'BUY' recommendation for DIAMONDCORP

[jimbobjames2002] 31/7/2015 08:15

Agreed, if you've run 24 miles of a marathon, wouldn't you want to keep going for last couple of miles? Getting out now makes little sense when there's a diamond mine with a 25 year lifespan on the horizon IMO.

[smarm] 31/7/2015 08:10

A few small sellers....

I suspect we will see production towards the end of the year. We've waited years, they have the money they need, there really isn't a problem here.

We wait.

S

[ridicule] 31/7/2015 07:53

tiger If you are a trader, you could get burned a bit today. If you are an investor delays happen in mining projects. The real key is the report that K4 looks better than expected. If it had looked worse then I would be on my way. The price today will reflect the ratio of traders (hot money) to investors (value seekers).