Gem Diamonds Share Discussion Threads

[davethehorse] 17/9/2024 13:26

Back into the 10s?

[davethehorse] 16/9/2024 08:53

MMs making sure the traders get stuffed

[swinsco] 16/9/2024 08:35

10 pence getting closer. A brutal start to the week. Darn these markets.

[mindthestash] 12/9/2024 14:47

DCR.
The behaviour of directors only makes sense to me if they plan to take it private for penny share value and need to raise the most if the cash to do so off the balance sheet initially.I've suspected this for some time but diamond market is grim and raising cash therefore tricky.

[davethehorse] 12/9/2024 09:59

Director lifestyle company....they don't need to buy shares....

[dcroston] 12/9/2024 07:53

Back to sleep until Q3, no point entertaining the halfwits.

[davethehorse] 12/9/2024 07:41

Excellent summary Chris spot on.

[dcroston] 12/9/2024 07:13

Chris,

Good to have an alternative view point

Africa? Agreed, more risk.

Closed mine? Yes, under C&M at minimal cost.

Mining 20 years? See mine plan

Financial health? See Q1 results

[russman] 12/9/2024 06:41

another big stone & the share price does not budge.

[chriss911911] 12/9/2024 06:37

So, they dug up another diamond, and in other news Gem Diamonds digs up diamonds for a living. At half year, it shows earnings for last 12 months, for shareholders of Gem Diamonds, result in a PE of 26, based on yesterday’s closing mcap, if they are sustainable, but then on a cashflow basis it is negative, which clearly is not sustainable and gives high doubt on the quality of earnings, so I'm content to stick with the simple position of cashflow negative over 12 months for shareholders of Gem Diamonds, so if sustained, valueless.

During that period local government per usual took a healthy wedge in cash out, over 14m USD over that period, nice, the locals are hungry for dollars there, and not really minded the dollars flow out the country. Just 10 weeks to go before they run out of money, how about tell me you have some new funding in place and you have not lost your shirt getting it ? Meanwhile in other news diamond prices continue to fall to new lows, as the systemic issues in the industry continue to play out.

Mining in the most dangerous country in Africa is a high risk, but to imagine the market cap higher or even justifying current price, you have to imagine, a whole lot more big diamonds much faster and different price for them, and a dramatic U turn in the market, the worry is there is not the margin left to mine viably and pay government fees, so there is a circular answer here. The last time Dimond prices were so low, it led to the mine closing for more than a decade as it was not economic to mine through the late 80's and the whole of the 90's.

Then there is the question, of longevity of mine, since they have been mining hard for over 20 years, and a bit way back in 1977 as well, the systemic issues in diamond market with prices in free fall, more pressingly viability of the mine to mine profitably whilst pay out huge fees to government, and convince a lender to lend on suitable terms to summarize.

Would not be surprised to see this retest lows 8p, at which point it is still not cheap and high risk, despite many platforms for trading showing metrics that are not right, obscure stuff like this with minority entanglements and large royalty obligations, means the numbers cannot be taken on face value. It would not surprise this rising or falling at these levels it's just all driven by guess work, what it could be worth if a lot changes, but I see more likely retesting lows in next weeks, but today ought to be a good day for most stocks at least and could be same for Gem Diamonds, but don't let that fool you, if you look back to the past they had two mines, but closed one as it was not economic, with now just one mine, likely to go same way in my view.

[dcroston] 12/9/2024 06:23

If Sustainable is selling as people keep implying (talk of overhang) then why has nothing been reported in the last 9 days? Every 1% movement has to be reported on within 2 days.

Lots of speculation of an overhang by the usual suspects on here but any evidence of one is yet to be provided.

Strange that Sustainable would sell between 13-15p range but not lower. That doesn't make sense to me.

Maybe they'll sell into the strength of Q3 results? Or maybe something else is in the offing, pure speculation, who knows?

[neo26] 11/9/2024 22:38

Mms trying to make mkt to entice buyers so the seller can dump. Must be really distressed seller..

[dcroston] 11/9/2024 19:27

MTT,

As I've said, pure speculation on my part.

I asked the question via investor relations and a didn't get a clear definitive answer, the reply was a bit vague.....Just a feeling.

Probably completely barking up the wrong tree....but why do directors not see present value in the current share price?

I recognise the diamond market is struggling but even so, even in this weak market the share price should be approaching 20p+ by now. No one would quibble at that based on company fundamentals.

Okay, so Sustainable have sold down from 21.36% to 16.53 which is depressing the share price, and have not sold anything significant since. Why? It seems odd.

Something doesn't feel quite right to me.

I feel sorry for shareholders that have seen the share price destroyed and are cynical about management's ability to provide shareholder value.

I'm hoping for a recovery in the SP, and waiting for some clarity around Q3.

The only real silver lining is the regular recovery of high value large stones, and I expect that to continue.

[mindthestash] 11/9/2024 16:26

DCR. interesting proposition.
Do you mean
A) they are as impoverished as the other long term shareholders like me or

B) they are unable to because there's a legal regulatory impediment to directors buying around ownership/takeover.

As regards B they usually give themselves our shares at nil cost. I admit that even these have diminished recently but you get the culture.

Interested in plan A. I can see the fund wanting to shift these but if they could find a takeover buyer they'd have done the deal. Selling back into the market at every little upturn must be the final option as its ultimately self defeating.

[davethehorse] 11/9/2024 16:12

Looks like trading in the 10p range soon, despite the stones....so illiquid

[dcroston] 11/9/2024 10:13

MTT,

The ore being mined isn't considered high grade so the recovery of all these large stones is obviously welcome.

Purely speculation on my part bit I'm wondering if Directors are in a position to buy?

[mindthestash] 11/9/2024 09:59

Not a single director has bought even one share.....
As an earlier post alluded, if they've hit what the mine managers on the front line think is a sweet spot that's got a way to go still that's a message that would go up the line to directors and not in an RNS but nobody is buying.....
Odd

[swinsco] 11/9/2024 09:04

Your earlier post makes sense regarding traders dumping their earlier buys from previous institutional sells. Twitter is a mind field of devious characters. The more followers - the more power.

[boonkoh] 11/9/2024 08:54

What GEMD need to do is also announce when they sell each diamond, and the $$ it generates.If we get a steady series of $3-5m cash announcements, that will wake the market up.

[davethehorse] 11/9/2024 08:50

It's seems they could discover 20 over 100c and no difference made to the share price ....is it the overhang or something else???

[swinsco] 11/9/2024 08:41

Still think 10p looking likely. Frustrating.

[stockhunters] 11/9/2024 07:58

12 large diamonds this year alone, looking to double that of 2023

big opportunity here?

[boonkoh] 11/9/2024 07:51

3 large diamonds in Q1... 4 in Q2... 5 so far in Q3...What if this isn't an anomaly and they're mining through a rich area of large diamonds, and their new machinery is able to pick up more large diamonds instead of accidentally crushing them. This is a structural shift, no?(I hold in the Boon Fund)

[bad gateway] 11/9/2024 07:11

Shame there's no RNS service on advfn today. "Remarkable" sounds expensive to me.