Diamondcorp Share Discussion Threads

[wisecat2] 15/6/2016 07:57

Todays SA Fincial Mail

by Charlotte Mathews, June 15 2016, 08:03

DiamondCorp ripe for takeover?

DiamondCorp, the JSE- and London AIM-listed diamond miner, could be ripe for a takeover. Petra Diamonds, Trans Hex and Sibanye Gold are tipped as possible interested parties......

FYI

[ged5] 14/6/2016 18:27

Thanks hpcg! I agree with your interpretation. I was guilty of clumsy wording which I've edited. It was the paragraph about the monthly sales I was querying.

I guess the 2 sales (probably July and August) before September will not be regular monthly sales.

[hpcg] 14/6/2016 17:28

Ged5 - My interpretation of the Antwerp auction was that with the "interception" of these export parcels they had another variable to account for. We know that small parcels don't auction well.

[jaf1948] 14/6/2016 17:22

A highly selective and biased summary, IMO. Where do I start ?

lack of special diamonds: The RNS makes it clear that the diamonds that were sold were the normal packages - special diamonds are handled separately so we cannot say whether or not any have been found.

25% of the new dump trucks not working: The RNS states the other truck is 'on schedule to be fully operational by the end of this month'. In other words, it was not meant to be working at this point in time.

the present fleet incurring high costs: The justification for the new trucks is that the old ones needed replacing. If they were NOT incurring high costs, there would be complaints about buying news ones which were not needed.

I could go on but it really is not worth posting on this board. I am sure I will not be missed.

[ged5] 14/6/2016 11:26

Good to see the rise in price per carat from $175 per carat to $189 pc for run of mine diamonds and from $19pc to $53pc for the tailings diamonds.

If they can achieve these prices or better in the Antwerp auctions scheduled to commence in 2-3 weeks then I might be a little happier.

However there is a lack of special diamonds. In March there were 2 special diamonds. One at $5000pc the other at $6363pc. That was the benchmark and why the market like me is disappointed.

Also the scheduled auctions may be rescheduled!

Does the following make sense?

"Management will now monitor the rate of rough diamond accumulation from the first month of full production from the UK4 Block during July and determine the best date to re-schedule the next Antwerp tender to maintain regular cashflow until steady state monthly tender sales is achieved. It is currently expected that two further tenders will take place before regular monthly sales commence at the end of September and the Company remains on track to produce more than 75,000 carats of diamonds from kimberlite in 2016."

There are only two months from July to September so why not just say monthly sales will begin in July!

Perhaps just clumsy wording!

Considering the carats produced so far it looks like 75000 for the year just about meets expectations.

The question that most needs to be asked tomorrow is when will they meet the target of 400000 carats per annum they have been telling us about for several years?

Finally 25% of the new dump trucks not working and the present fleet incurring high costs.

The wait goes on! Let's hope the next update is good!

[hpcg] 14/6/2016 10:31

Looks like sensible price action to me. Long term looks much better if grades are materially higher than modeled. Short term looks touch and go. At least the announcement acknowledged that eventually, which gives me some faith in the honesty of the board.

[ridicule] 14/6/2016 08:14

People will stay cautious while the cash is so tight, but give it 3 months with no further calls on re-finance and this share will be in a different place.

[smarm] 14/6/2016 07:48

Looks good to me.

S

[jaf1948] 14/6/2016 07:27

RNS this morning. All sounds very good to me. On schedule for full production in July, sales above expected prices, and a higher than forecast frequency of diamonds greater than 4 carats in size.

Minor problem with high breakdown and repair costs on the existing fleet while the newly acquired machines are being refurbished but the extra $436,000 will help there. All in all, very reassuring but I would guess that some people on here will not be satisfied.

[ged5] 10/6/2016 12:30

A couple of sells and the offer increases to 7.49!

Off for the weekend now. Have a good one!

[ged5] 10/6/2016 10:34

Beginning to look like another good day here. Yesterday was the highest volume for a while and it's going to be matched today if these buys continue.

7.4 to buy now. Tick up due soon?

Indeed tiger! The trend is your friend!

[ged5] 10/6/2016 08:13

There were two of them. Just wondered if that was the last of the recent seller.

Good to see the rise in share price :)

[iicb] 09/6/2016 19:50

That is only a 30k trade. Nothing to get excited about.

[tiger60] 09/6/2016 19:17

Follow the trend

[ged5] 09/6/2016 12:22

Anyone know what's going on today?

I could buy yesterday and most of the morning at 6.75. Just before the 500K trade the offer went up to 6.85. Now it's gone through, the offer is back down to 6.77.

Not sure whether to top up now or wait until after the AGM next Wednesday. I would think there will be some sort of announcement about diamond production so does the 500K trader know or hope for some news and if they do know was it a buy or sell?

[jaf1948] 07/6/2016 07:25

Ged,

After reading that article, I wrote to Investors Chronicle to ask about DCP's omission. This was their reply:

In putting the sector focus together, I did look at DiamondCorp very briefly, but owing to its size I decided not to provide a recommendation. It's not a hard and fast rule, but we usually avoid covering companies of DiamondCorp's size, as they can be very illiquid and are often wildly affected by market makers. That said, I've made a note to follow their ramp-up to full production, and will remember to drop you a line if I end up deciding to write something.

So at least we are more on their radar now.

[pharmoutcomeszzz] 06/6/2016 21:00

The irony in your last post considering you comment of the previous made me laugh. Thanks for that. Take your head out of the trees and look at the wood. Read again jaf1948 post of 13th may. They are facts. Please agree or argue against them if you wish and your kudos will certainly rise. Your self-pitying post of 4th June serves no purpose and adds nothing to the debate

[iicb] 06/6/2016 20:13

Yes - but you can comment on the company, but telling me what I should or shouldn't do is none of your business.

PS: Jaf, you would ;-)

[pharmoutcomeszzz] 06/6/2016 19:45

i may be a new poster to ADVFN, but have had shares in DCP since 2011. i currently own 911,000 of these at an average of 6.5p per share, so i believe i have as much right as you, iiCB, to comment as a PI.
may i direct you to LSE share chat for DCP, where i have posted occasionally before under a different username. i find their messages much more informative, with much more detailed analysis, insightful comment and with balanced views.
i recommend you read posters like Valency, Banksman, goodflyingduck, jaf1948 and many more.
they will certainly make you better informed about the company, are more respectful to people who don't hold their own views and, with any luck, their often funny observations and gentle sarcasm may prevent you from having to start taking those SSRI's!!

[jaf1948] 06/6/2016 18:32

Is that the way you welcome new posters ? To my mind, he has hit the nail right on the head with his first post.