Diamondcorp Share Discussion Threads

[iicb] 20/9/2016 20:59

PS : good maths Ged ;-)

[iicb] 20/9/2016 20:59

when they organise these sales in Antwerp, is it purely just DCP there or many other companies?

[ged5] 20/9/2016 13:09

Amen to that! Cheers!

[ridicule] 20/9/2016 13:05

Good one Ged. Lets hope we now move forward without any further delays and not too much dilution. Just topped up yet again!!

[ged5] 20/9/2016 12:55

$782K so not too far out

[ged5] 20/9/2016 08:45

Thanks to Yield Strength on LSE:-

hxxp://www.moneyweb.co.za/news/industry/company-in-focus-diamondcorps-lace-diamond-mine/

[ged5] 19/9/2016 09:26

Darcon, thanks for your post!

From the interim report:-

" The diamonds yielded during August remain of a high quality, and four stones larger than 10 carats were recovered, including a 12.7 carat gem diamond. These diamonds will be sold in the October sale."

So we need to look back to the 9th August RNS.

" The quality of the diamonds recovered from fresh kimberlite continues to be impressive, with a good proportion of clean sawable stones in all size fractions, including type IIa diamonds."

So there's no reason to expect anything less than the $189 and $53pc

Using the same proportions as the June sale we might expect $563K and $144K to give a total $707K.

I didn't see any indications of any improvement or deterioration of diamond sale prices in PDL's results this morning so I'll stick with about $700K.

[darcon] 16/9/2016 16:15

How much can we expect DCP to receive in the current diamond tender?

Low case:

5700 x USD 53 = approx. USD 300k

Optimistic case:

5700 x USD 189 = approx. USD 1mln

I expect the actual figure will fall somewhere in between the above. I have used the average price figures DCP announced it achieved in its previous tender.

Any other thoughts?

[pharmoutcomeszzz] 15/9/2016 22:30

I agree,not impressive and very disappointing- but I hope you did not invest in these shares with your eyes closed and assuming it would be one smooth incline to massive profits. Diamond mining is no sure bet and re-opening an old mine and passing nearby old workings as you make your way to mining ore in the 1st block was always likely to be fraught with setbacks. As your excellent link article states the quality of diamonds coming out is very encouraging and just one or two 50 carats +, which PL STATES ARE THERE, ITS JUST A QUESTION OF TIME, will rapidly turn around the fortunes of this company. Just sit back and take an overview- is it really wise to sell now (almost certainly at a hefty loss) or be patient and wait for the certainty of some big, quality rocks?

[iicb] 15/9/2016 14:34

In August they were meant to get back to speed, then we find out that 1/2 of the month they again haven't produced. That is not very impressive surely you must agree.

[pharmoutcomeszzz] 15/9/2016 13:27

IiCB: self pitying back in June, self pitying now. Stop torturing yourself. Ged5: if you're referring to me, no change in guise and no change in viewpoint. Maybe I'm just more optimistic, maybe I'm so long In the tooth I've seen small mining companies like DCP come good before, maybe I'm just more 'qualified' - whatever that means. What isn't a maybe is that I do my own research, make my own decisions and don't blame anybody else if it doesn't work out.

[ged5] 15/9/2016 07:51

So yesterday we had two buys to each sell and for the second day we've had relatively high volume.

In the past two days we've had an aggregate surplus of about 675K buys and yet a markdown of near 17% on Tuesday and a further 2% yesteday. (down 4.4% until just before close)

Is there a very large sell being worked or is this going to attract traders over these next few days?

I see one of our unqualified advisors has reappeared in a different guise!

[pharmoutcomeszzz] 14/9/2016 22:13

IiCB: you are sounding like a spoilt baby having just thrown your various dummies out the pram. Yes, the RNS was disappointing but your generalizations of 'constant operational problems going forward', 'continued dilution or cash calls', 'decent profit likely years away' are only possibilities and bear no dependence on what has gone on historically. Your last statement could be spectacularly wrong since if operations going forward are uninterrupted, profit could come very rapidly.do us all a favor, stop 'thinking' about coming out, just do it! ( and no doubt lose a packet in the process)!

[iicb] 14/9/2016 13:38

Oh and any decent profit is likely years away so is it worth the wait?

[iicb] 14/9/2016 13:34

I now see constant operational problems with this mine. Continued dilution or cash calls. A CEO too stretched in responsibilities.

[ged5] 14/9/2016 07:51

Looking across the boards it appears there are two distinct viewpoints. I would have liked to have seen more constructive comments for the apologists who could only muster:-
Oh deary me these things happen in mining

or

You have different opinions to me so sell

On the second point:-
Are you qualified to give advice?
Why would anyone take advice from an anonymous stranger?
When you openly admit to failures are you expecting us to learn from your mistakes? If so could you please be more constructive.

Looking at the trades yesterday there were 600k more sells than buys. Did that really warrant a near 17% drop in the share price? There was also a buy of 225K reported this morning.

For those who believe in the potential of this company maybe the unjustifiable mark down is an opportunity.

Good luck to all whatever your viewpoint.

[tiger60] 13/9/2016 19:30

The contradiction here is that people are saying such events are not uncommon and yet we need to look for morefinancing to cover it! Surely that is a contingency that would be planned for? Surely...and changing the baseline case a few months back was interesting and not really explained other than making the numbers look better

Looks like a finance director is missing, maybe they can at least get that in place ( they have had a lot of practice at placements!). We need one. However, it is only a matter of the form of dilution and the amount left to find out, not something to jump out of bed with excitement and see in the weeks to come.

Too many apologists for a company that stated it was fully funded a year back and how many placings since then? it may well come good but the concept of lost opportuniy cost on waiting so long seems to be lost on many. I expect there isnt a single person on these boards that are inprofit from dcp and thats why we are all here.

[iicb] 13/9/2016 16:12

Oh dear another flop share. Think I might need to come out here. My faith in Loudon is falling fast. He's becoming the king of bad news.

[ged5] 13/9/2016 11:13

The first tender of diamonds in Antwerp to be held by Diamondcorp Plc (LON:DCP) is just four days away, with results expected on 20 September.

The company made the announcement on issuing financial results for the six months to June 2016 which showed losses at just under £250,000, as compared to £3.15 mln during the corresponding period a year ago.

The change is a significant sign of the progress the company has made in the intervening period, as the Lace diamond mine in South Africa is now fully operational.

Admittedly, there have been some teething problems along the way, as water ingress and low grades material from former workings hampered production.

But the company considers that such operational issues are “not unusual” during the ramp up phase of a mine.

Diamondcorp now has just over 7,000 carats in inventory, but by December expects to be offering parcels of 9,000 carats in each tender.

hxxp://www.proactiveinvestors.co.uk/companies/news/165757/diamondcorps-first-antwerp-tender-just-days-away-165757.html

[ged5] 13/9/2016 10:51

2vdm, please dont be afraid to agree or disagree with anyone. We are all entitled to our views. I was venting my annoyance at yet another poor operations update.

I have been in communication with the company and do appreciate how they conduct some of the business in particular how they handled health and safety issues after the miners assistants injury. I also realise some of the issues are consistent with mining start ups.

However there have now been a series of disappointments dating back to 2011. A poster on LSE made the points I was going to make myself. From DappaT:-

"Very true Daisan

BUT....quoted from our operational update on August 9th

"Production from the first mining block on the 310m underground level at the Lace mine successfully restarted last month and is proceeding at the planned rate of 30,000 tonnes per month.

August represents the first month of commercial production and processing of kimberlite mined for the month to date is averaging 31 carats per hundred tonnes (cpht), in line with the base case forecast for this first mining block."

Then from today's update we hear that 9 days of production were lost in the first half of August if we take the first half of August to mean....01/08-15/08 that would mean that the latest these issues could have been known was on the 6/08

So I am of the thinking they knew full well about these issues when the last update was made but chose not to make the wider market aware of it, instead making a very positive announcement that we had commenced full production.

Ofcourse we could give the benefit of the doubt and assume the issues began on say the 10/08...but wait a minute...there was another 8 days of stoppage in the second half of August....it sounds a little suspicious to me."

[2vdm] 13/9/2016 09:59

Ged,I'm afraid I agree with ridicule here. Junior AIM miners are always a bit tricky and if you play in this market you can expect some lack of clarity. These are not FTSE 100 companies and if it stresses you out, perhaps you are investing in the wrong area. Please don't take offence at my comments,certainly none intended, but I have been stung many times on AIM and I trade here if not daily, then certainly every other day. I occasionally look at/review the main managed funds and FTSE100 equities in my portfolio, but with AIM stocks you have to be right and top of them and if you feel DCP is bad, then sell and save yourself a lot of worry. At the same time you can make real returns. FWIW I bought again this a.m.as have many others, as my personal view is this could do very well longer term. Everyone has their own strategy/views.