Gem Diamonds Share Discussion Threads

[don777] 25/1/2013 16:29

rimmy 2000,
many thanks

one of the reason I bought is Mr Ian Henderson bought at approximately 180-190P here before and FIL also increased its holdings in the weekness of the share price recently.

D

[rimmy2000] 25/1/2013 09:03

director buys 72,000 at £1.90 and 23,500 @ £2.50

[rimmy2000] 25/1/2013 08:56

.. and it can go into an isa (tax free)

[rimmy2000] 25/1/2013 08:55

"EMERGING MARKET WEALTH creation is positive for
diamond prices as jewellery is an obvious place where
consumers can turn ownership aspiration into reality.
The price of the precious gems should also benefi t from
strong market fundamentals as rising demand comes up
against dwindling supplies. These are good reasons to
buy diamond miners, particularly as weak commodity
prices in 2012 leave them trading on depressed
valuations. Investors with a long-term horizon should
buy Gem Diamonds (GEMD) which owns the famous
Letseng mine in Lesotho. It has no debt and boasts
$94 million cash, equal to 30% of its market cap. The
shares have been heavily sold off on commodity price
weakness, earnings downgrades and delayed growth
projects. Yet this provides a good entry point when you
consider the fi rm's strong balance sheet and world-class
asset and exploration upside off ered by its Botswana
operations. It should be able to self-fund expansion at
Letseng, doubling production after 2015 which is when
diamond price strength should have well and truly
returned to the market.BUY"

[don777] 24/1/2013 14:55

rimmy,
what share mag said about GEMD?

thanks

D

[togglebrush] 24/1/2013 13:57

Gem Diamonds Limited (LSE: GEMD) will be reporting its Q4 2012 Trading Update for the period 1 October 2012 to 31 December 2012 at 07:00 GMT on Thursday, the 31st January 2013.

[rimmy2000] 24/1/2013 13:53

todays move poss attributable to tip in this weeks' shares mag

[don777] 24/1/2013 13:47

there are some smart money move in waiting for next Thursday updating.

market thinks it's positive.

[undervaluedassets] 22/1/2013 10:17

A great read for serious investors.

[don777] 17/1/2013 11:02

Q4 2012 date should be out in next 2-3 weeks, let's how the yellow stone price moving.

[eric76] 16/1/2013 22:00

Reckon you may well be right Don777.
Starting to look well oversold at the bottom of its declining wedge with rsi and the stochastics turned up.
Picked up just a few this afternoon and will add upon breakout c. 147p looking for a breach of the 50dsma then a possible test of previous support around the 180p as a trade and from there will go with sentiment. To the downside will be out asap with my tail between my legs if 140p goes eod.
ATB,

[don777] 15/1/2013 13:58

it's time to buy the diamond mining as it's cheap.

[alan@bj] 11/1/2013 18:14

I agree. Still think there is excellent value here, but we could do with a bit of good news.

[don777] 11/1/2013 17:06

PDL share price runs very well in the last 3 months.

I thought we should do better as we are cash rich, not like PDL, lots of debts.

[alan@bj] 11/1/2013 16:40

Tiffany's recent trading update was pretty pessimistic. Lower than expected Xmas sales and profits likely to come in at the lower end of guidance.

[don777] 11/1/2013 14:36

testing 5 years low?

[luminoso] 19/12/2012 08:57

Thanks for sharing the info with us, Haywards.

[haywards26] 17/12/2012 15:46

Right, I have had a reply from GEMD in regards the Ellendale mine disposal RNS.

Without quoting exact details, below is a summary.

The net asset value of the mine was not quoted in the RNS and is less than the gross asset figure that was quoted, as there would be an environmental obligation to offset against the gross asset mine. The net asset figure as at the interims was still over 4 times the disposal proceeds value. Which I still find poor form.

I reiterated my original concern to them in regards the accuracy of the balance sheet values after the Ellendale mine dispoal announcement, and that the net asset value should surely have been quoted in the RNS, to give a more accurate picture as to the potential year end write down.

GEMD management also reiterated the commercial sense of the mine disposal, which I agree with.

I am not really satisfied but pleased the GEMD bod replied to my query and I shall continue to retain my shares.

[alan@bj] 10/12/2012 15:39

Many thanks Haywards, I completely agree with you, it's a huge write-off and it will be interesting to see what explanation is given.

[haywards26] 10/12/2012 12:13

Hi Alan,

The investor relations individual wanted to verify my shareholding (through my nominee sharedealing account) prior to releasing any information, which they have now done and confirmed a reply shall be sent. I shall summarise once this is received on here.

I have read other people comments both on here and the iii board. Regarding the disposal, and that it is a good move to dispose of a short life mine, especially if revenues received versus costs to extrat were becoming less commerical. This I do not dispute. My bone of contention is why the mine was allowed to be valued so highly in the GEMD financial statements.

Shall update once I hear back.

[alan@bj] 10/12/2012 11:56

Haywards - re your post 355 - did you get any response?

[luminoso] 05/12/2012 15:06

Thanks H26.