Gem Diamonds Share Discussion Threads

[davethehorse] 23/3/2022 12:04

Shaky shaky time...#mm's. Company buying back shares and they drop the price...mmmmm

[davethehorse] 22/3/2022 15:25

MMs walking this back again on low volume, come on Clifford, splash the cash on buy backs!

[davethehorse] 18/3/2022 14:40

Think these catalysts will see the share price push on over the next month or 2...

1. The tender sales results this year to date, of which there have been several with large and small stones, will have been good in terms of $ per carat (imo and based on PDLs recent tender results). Q1 should be very impressive with huge cash generation (imo).

2. Funds and PIs will likely be looking to get involved before the XD date, as they did last year so April/May should see the share price increase.

3. The diamond market will continue to be very strong, I cannot see it weakening short term, and at present the prices are 25%+ up on 2021...huge increases.

4. Most of the stock is closely held, I think near 80%, so unless a holder starts to unload there will be a stock shortage if funds/PIs buy in on Q1 results, to get the divi etc.

5. Clifford sounded sure they they would be buying back shares, if so an even bigger share shortage (share squeeze) and a re-rate in the share price

Just my thoughts.

GL those keeping the faith.

Dave

[davethehorse] 18/3/2022 12:42

Has been 24p too, only 18 months ago ;-)

[tom2022] 18/3/2022 11:23

It's been re-rating since 2007, used to be £11.

[davethehorse] 18/3/2022 09:41

Berenberg raises Gem Diamonds price target to 80 (70) pence - 'buy'

[davethehorse] 17/3/2022 23:03

Panmure Gordon have put a 95p price target on GEMD today, saying that a "re-rating of the shares looks increasingly probable".Not just me thats thinks a rerating is close...

[tom2022] 17/3/2022 22:32

Letseng is now a very steep cone shaped hole, which means the rock needs to be hauled up a huge spiral. Diamond prices are doing nicely, but so are diesel prices. Costs will be getting out of control. Gemd paid ~11p per share over the past 15 years digging from a much shallower pit with higher diamond prices and cheaper diesel. What will the next (and final) 15 years bring, 5 or 6p? Soon the mine will need to go underground as the hole will be too steep. We all know what that means, huge capex, suspended dividend and material dilution.

[davethehorse] 17/3/2022 21:35

https://www.miningmx.com/top-story/49131-gem-diamond-founder-clifford-elphick-mystified-by-grossly-undervalued-share-price/

[tom2022] 17/3/2022 19:12

Dave 2p a year for 15 years is only 30p... They usually don't even pay one so shareholders would be lucky to get 8p over the LOM. This would be a dreadful long term hold.

[davethehorse] 17/3/2022 18:20

It's not far off a 4% dividend?? Not bad imo...

[davethehorse] 17/3/2022 18:17

15 years of mine life left with the diamond market in a good place would seem fine to me? What were you expecting to be impressed?

[tom2022] 17/3/2022 17:57

Very disappointing results, the dividend is much too small. There's about 15 years of life left in the mine after which it will be empty and worthless.

[davethehorse] 17/3/2022 14:52

They are over due a big stone recovery, last one last Nov, hopefully another imminent which would push the share price back up through 60p:-)

[davethehorse] 17/3/2022 14:40

I also asked about the recent tenders in 2022 - they didn't give specifics but did say they were very pleased with the sales so Q1 update should be very good :-)

[swinsco] 17/3/2022 14:38

Thanks Dave. Sounds good.

[davethehorse] 17/3/2022 14:36

No timings mentioned but the management said they were very disappointed with the share price performance and said that they would be purchasing shares as buy backs to add shareholders value, hopefully raising the SP, adding to the effect the divi should have on the share price too. Listen to the presentation and Q&A on the GEMD website, all very positive imo. Ghaghoo sale close to concluding now too they said.

[swinsco] 17/3/2022 14:30

I haven't that! That would be very positive. Any dates given to when?

[davethehorse] 17/3/2022 12:20

Share buy back announced on the conference call, that's a biggie as the shares are tightly held, could be a major re-rate coming imo..:-)

[davethehorse] 17/3/2022 12:11

Buyers coming now...as expected...results were good, a divi confirmed and 2022 looks like being a cracker in terms of dollar per carat...plenty of scope for the share price to rise significantly imo...dyor etc

[davethehorse] 17/3/2022 09:17

Short termers who bought on the rise looking for a quick buck exiting but ignoring all the positives going forward for 2022...think buyers will come later today...

[bad gateway] 17/3/2022 08:47

lack on movement in the share price might be the drop in net cash. Not an accountant but all other no's looked ok to me? Maybe get an explanation at 9.30.

[tresham] 17/3/2022 08:46

They should mine the areas where there are large stones. The closed mine, (for sale), is still a drag on profits.

[davethehorse] 17/3/2022 08:46

No mention of the Ghaghoo sale, I'm sure this will be raised on the Conference call.