Diamondcorp Share Discussion Threads

[iicb] 13/10/2015 11:20

shame loudon keeps delivering disappointing news lately.

[hutch_pod] 13/10/2015 10:23

Thanks Ged, and agree the larger diamonds are key.

[ged5] 13/10/2015 09:50

Quite correct Hutch_Pod. From the full year results:-

"The Company has not factored diamond price increases into its Lace project model since the 250 level bulk test diamonds were valued in 2012 at $160 per carat. Nonetheless, in light of the current market weakness, the Company now models the Lace project at $150 per carat. At the current rand-dollar exchange rate, this represents cash operating margins of 81% on the UK4 Block and 71% on the deposit overall."

Then today:

"The de-grit circuit has already been installed and commissioned in the plant, with the bottom screen size having been increased from 1.00 mm to 1.25 mm."

"The valuation was undertaken by the Company's independent agent in Antwerp, Natural Diamond Corporation NV. Pleasingly, the valuation predicts diamond sales should average between US$140 and $160 per carat at a 1.00mm bottom screen size cut off and between $160 and $200 per carat at a 1.25mm bottom screen size in the current market."

So there should be an increase in $ per carat in any future model.

For me though it's the larger diamonds which will be the company maker. Let's not forget that the potential for pinks and lilacs has been mentioned previously and apparently they are the ones fetching the best prices.

[hutch_pod] 13/10/2015 09:10

Hi - when the valuation mentioned two ranges, and DCP is now using a 1.25mm bottom screen size, is it correct to focus on the $160-$200 per carat range compared to the $150 mentioned previously as the prudent base case?

[keifer derrin] 13/10/2015 08:59

I missed the part about half of one months production and thanks for pointing that out - I must of been seeing red as missed it - Since investing in DCP I always read the last part of the rns - as they appear to have the "good" news at the top and the "bad" news at the bottom - So was put off about the lack of money. I want to see sales as I don't to see again they are raising money on the market again. I guess I'll have to wait for the next set of figures.

So based on their information they should have sales by the middle of November - lets hope - but from past rns's I wont be holding my breath.

I've been in situation before, with CEY, but they came good in the end, which is what I am hoping with DCP......

[jaf1948] 13/10/2015 08:51

keifer,

The RNS states 'the recoveries to date are less than half of one month's production once commercial production is achieved from the first mining block' so if 4,250 carats are less than half of one month's production, it won't take very long.

The RNS was full of good news for the longer term but predictably, the traders have sold this morning. So far just over 250,000 shares sold out of 376,000,000.

[keifer derrin] 13/10/2015 08:46

I found them very disappointing....the usual, we are doing this and that, but when it comes down to it there sales are dropping - which will impact there bottom line.

I appreciate that the company has to spend money on capex for the long term, but stopping sales to get a better a price is not the best way, imo - I would rather see some money coming in, no matter how low.....

they say there are not going to sell any until they have over 10000 carats, fair enough, but they only have over 4000 carats - how long did it take them to produce that and how long is it going to take to get other 6000.....this is what concerns me the most......

I'm not surprised by the shareprice drop - but I am in the long haul as this is a tiny company with great potential and these issue crop up...

[tiger60] 13/10/2015 08:22

The irony.

You can't read a RNS.

[ged5] 13/10/2015 07:41

Yes it is disappointing there are delays in sales but we were warned that progress had been slowed down. We are still waiting to see how good the upper UK4 block is. I'm mainly interested to know the value of the larger diamonds and if there are any fancy pinks.

At least the conveyor belt has been completed with commisioning completed at the end of the month and throughout the announcement there are suggestions of improved economics.

I'll await the results of the 180m drilling with interest.

[jaf1948] 13/10/2015 07:39

How predictable. Not the news, your comment.

Good news about the conveyor which will reduce costs per ton. Good news about the valuation - the RNS uses the word 'pleasingly' and sensible news about not selling small amounts into the market.

So the bulk test is not ready yet - so what ?

[tiger60] 13/10/2015 07:29

Hmm. Conveyor belt news before diamond bulk test news. As soon as i saw that....

[iicb] 07/10/2015 13:53

thanks on note on presentation didnt know.

[granitetim] 06/10/2015 16:16

Very nice presentation it is too..Available on their website

[tiger60] 06/10/2015 16:08

As requested new presentation available. Could of benn a few days earlier but credit due to DCP for reacting. Corner turned.

[tiger60] 05/10/2015 22:05

So people with trailing stop losses are traders? People that look at outside factors that have changed - delivery dates, diamond prices, slacking of demand, shift in outlook for equities at a macro level are all traders?

This company is a minnow in all respects traders are elsewhere.

It is going down due to uncertainty over production, reduced pricing which will impact oct receipts and a hint in the Northland note that initial project predictions in the short term seem optimistic. However, heres hoping we are near bottom and that DCP can come up trumps. They cant impact price but quality is an unknown. That is the side of the equation than can pulls us back to double digits along with a prod date in Nov/early Dec.

[jaf1948] 05/10/2015 20:28

The last news at the end of July said there are delays and problems so first the hot money went and then other people sold either thinking they could buy back cheaper later (which they could) or have left for good. So not surprisingly, the share price has fallen back.

As to the outlook, in the short term we don't know how long the delays will be so some people will give up, which IMO is short-sighted but everyone should make their own decisions. Despite certain comments on here, I believe the company has a great future and if it takes a little bit longer, it should still be worth the investment.

And talking of safety, remember that a fatality would mean an indefinite closure of the mine so by any criteria, it is worth doing.

[jaf1948] 05/10/2015 14:29

The share price went up because traders came in and the share price has gone down because traders have left due to the delay.

You are concerned because you are a trader (aka traderman123). I am not because I am not a trader. I am not condemning traders - it is just that they have a different viewpoint and perspective to LTHs.

[tiger60] 05/10/2015 14:24

You are right why would any shareholder be concerned to see the share price fall from 13p to 8.5p when we are on the cusp of production.

Ignorant and naive.

[jaf1948] 05/10/2015 14:06

tiger,

I try not to rise to your incessant moans about DCP but you keep demonstrating your lack of knowledge about mining, mining companies and AIM that I am forced to reply to you.

The fractured ground is causing delays. This was stated in the July 31st RNS. 'Tunnel development was slower than planned during the period due to the need to drain water from old workings in fractured ground near the kimberlite contact, the requirement for additional support to be installed and cover drilling for safety on the 290m level doming tunnel as the mining proceeded near old workings.'

Once they have informed the market, they are under no obligation to update unless or until there is a change in circumstances. One can therefore assume the situation is on-going and we will get our usual quarterly update at the end of this month.

With the delays and lack of news, the share price will fall and has. That is of no concern to me - as the RNS states 'While the delay is frustrating, management's prime concern is the strict adherence to safe underground working practices and it is imperative that safety is not compromised.' In a 25-year mine project, these delays are a nuisance but not critical to the success of the company.

Mining is never straight forward, and it is in DCP's (and therefore shareholders' interest) to ensure that everything is in prime position before production is started.

[tiger60] 05/10/2015 13:47

Uniform falls on a daily basis. At what point will DCP share with us. They were quick to talk up the price and boast about the production schedule being ahead of schedule, got the placing away and then?

[hpcg] 04/10/2015 12:16

I would think the cpt change relates to the full year mix of kimberlite grades and waste rock proportions simply due to the RoM reduction. Hence also why cpt increases in 17 and 18.

The troubles with PGMs and mining in SA in general is mildly positive for us. Reduced strain on electricity general cost control.

[ged5] 03/10/2015 16:01

The fractured ground is a worry because I'm sure it will slow progress down and we will need an update. I'm sure this will be done at the end of October.

The forecast by Northland for carats in 2016 is 135000 yet in the graph on page 19 of yesterday's presentation it looks more like 180000.

I have asked when and where the October sale of diamonds will take place but haven't yet received a reply. No doubt we'll hear about it in the October report.