Ly Disrup Tech Discussion Threads

[tippingpoint] 17/6/2008 22:29

Drew - its a 14 year projected mine life at Gras per broker report above

Potential revenue about £11 million per annum

imho

[timanglin] 17/6/2008 15:41

Thanks The Drewster and tippingpoint. DTEC have clear first movers advantage. 1 LRU machine is reported to cost £50,000(may have to take this figure with a pinch of salt) - there seem to be potential 'copying' risks both ways. Still a diamond in the hand is worth ...

[tippingpoint] 17/6/2008 15:17

Here is the post with research report:

tippingpoint - 15 Jun'08 - 17:40 - 253 of 297 edit


Here is a nice broker report from last year - makes interesting reading. Think these shares could make their way back to listing price of 12.5p with some pace shortly imho...

Just look at the potential revenues in the report:

[the drewster] 17/6/2008 14:01

Keith Bailey did some research note back in July last year which I believe a link was posted on here recently. It contains everything I knew, and a bit more, so well worth taking the time to read. If not, if you dare publish an email address I'll send you the pdf.

Complex share structures to keep in with SA rules.
Botha being potentially restrained by De Beers
Rights at the mine itself
Royalty structures
etc. etc.

All quite complex, but then, that's why you can buy a bargain if you think you've worked it all out.

[timanglin] 17/6/2008 13:39

will have to do more research - many thanks, and glad to be in on this.

[the drewster] 17/6/2008 13:33

Only ever planned to have 30 I believe. Also some worry about mining rights which is not (to my knowledge) resolved, and which might curtail everything by April 2009 (so every incentive to get a move on!)

Risks abound, but so they should if you can buy in at these prices.

[timanglin] 17/6/2008 13:17

Thanks The Drewster, as i understand the LRU, it is fairly portable, hence once the $288m is recovered at Grasfontein, the LRU's can be transported to the next facility, although clearly the next facility will have to have conveyors, a generator and so on?

A concept of revenue should therefore be partly based on the number of LRU's in DTEC's possession? Hence the original question - i am definitely long on this, as I can easily see, subject to all sorts of caveats, 50 LRU's in 3 years, it has taken 1 year to get to 10 LRU's.

Please correct me if i am wrong...

[the drewster] 17/6/2008 13:10

Grasfontein, based on estimates and limited sampling (so i guess is their expectations) amounts to $450m, $288 of which would be Diamond Tech's share.

The number of LRUs will only increase speed of throughput, since you can only recover what is there to be recovered.

If they recover $288m, then I suspect they would be considered slightly undervalued at the initial IPO value of £40m?!?!?!?

Time will tell, but staying long for now.

[timanglin] 17/6/2008 12:58

From the 8/5 RNS':

'The Company commenced mining operations using its exploration processing plant,which operates two LRUs, at Grasfontein at the end of October 2007. Sample mining operations have been focused on the tailings deposits on Grasfontein and recovered grades and are in line with management expectations, supporting management's confidence in the operational performance of the LRUs.'

Does anyone have an idea of how many diamonds 10 LRU's can recover?

[h d shoring] 17/6/2008 12:17

Certainly seemed to be a leaky ship prior to last rns .Or shall we be kind and say as we are in the diamond business there are bound to be plenty of people around with crystal balls.

[waldof] 17/6/2008 12:05

We'll know before the RNS..

[h d shoring] 17/6/2008 09:54

Good morning all ,lost our tongues now we are no longer in elevated mode?
The machinery should still be churning out dust at one end and diamonds into a box as yesterday ?
Bound to drift a bit until definite news on number of carats issued .

[the drewster] 16/6/2008 21:10

Very pleasant day - watched this rise to 4p, then spent the day on the beach with the family. Still think take-out will stop us getting what might otherwise have been possible, but expecting significantly higher than the IPO price.

[tippingpoint] 16/6/2008 18:10

Jby the number of buys today, there are a lot more people aware of this stock than one might think at first

[tippingpoint] 16/6/2008 18:09

Yes am rather hoping a postive rns re production soon, leading to a rapid climb to 12.5 ipo and beyond (especially as news flow develop re potential revenues.... imho

[bubsy2] 16/6/2008 17:47

its looking good though me thinks back to 12p

[tippingpoint] 16/6/2008 17:41

Hopefully this rise can continue steadily, but an update from the company as to production success would of course be the icing on the cake. I wonder which institution is selling their stake?

[tippingpoint] 16/6/2008 16:34

An amazing volume day today

[humbugg] 16/6/2008 15:03

HD,
Cyprus is on the PRL thread i seem to think.

[tippingpoint] 16/6/2008 15:01

I think a reasonable sized holder is being let out here with reasonably largish sells matching buys.
Once they cleared it should get going again

[h d shoring] 16/6/2008 13:42

Are you still with us Cyprus steve or have you bailed out ?

[tippingpoint] 16/6/2008 13:25

not really

[h d shoring] 16/6/2008 13:08

anything significant about 1.25pm t/p?