Gem Diamonds Share Discussion Threads

[don777] 15/3/2013 14:52

it might take a while for market to build the confidence here.

let's see what they write on interim management statement next month if they do the same as they did last year.

but obviously the share price is at its low end range.

[haywards26] 12/3/2013 21:12

I am in the market for more here if they drop to the 140 range again..

[dr_ex] 12/3/2013 17:08

hammer time!

[uxb_steve] 12/3/2013 16:31

undervaluedassets
Thank you for your post.
Made me reconsider dumping my stock and bought more at 1.42 instead.
I agree with your sentiments ( having done my own research etc etc).
Well done!

[undervaluedassets] 12/3/2013 12:32

page 23 puts this into context - GEMD can't control prices and last year the decline in wholesale prices hurt EBITDA by some 86 million.

But this year diamond prices are going up.

Sellers are making the classic error of selling the past.

Those buying from the investors that have chosen to capitulate today will reap the benefit as diamond prices improve.

When you buy diamonds do you want to buy them when they are cheap or expensive? Buyers today are buying diamonds on the cheap.

It really is that simple.

[salpara111] 12/3/2013 10:25

Exactly! they do not set diamond prices so profit falls from $62M to $17!
Very glad I took my small loss selling out months ago.
Had been keeping an eye on them in case they had turned the corner but clearly I won't be reinvesting on the back of these results.

[togglebrush] 12/3/2013 08:09

Results RNS

[undervaluedassets] 12/3/2013 07:56

As expected.

They increased production - what more can they do - Gemd do not set diamond prices

However looks we have touched bottom in the weak diamond pricing cycle.

"2013 started positively with strong improvements in rough prices as demand increased on fears of short term rough supply shortages."

[uxb_steve] 08/3/2013 22:55

Still looking for a push towards 200 p.

[dr_ex] 22/2/2013 13:34

big trade just gone through

[alan@bj] 21/2/2013 14:33

From Investors Chronicle today:-
Gem's a rough diamond
Gem Diamonds ' share price turned to charcoal for much of last year, dropping by more than one half in just nine months, says Ragu Dharmaratnam of Baselica.

Now, though, it looks poised for recovery. Its 21-day moving average is above its 55-day moving average for the first time since last May, while the price is also above its Ichimoku cloud. Go long on a break above 178p, targeting 200p, with a stop loss around 165p.

[uxb_steve] 16/2/2013 15:22

Holding in an ISA - looking for 200 p before too long.

[rimmy2000] 04/2/2013 11:17

fantastic. This is cheap and decent over the longer term. Mine are in an isa. with the base now established we will see more interest as the risk adverse buy in.

[don777] 01/2/2013 17:01

it might just repeat what it did last year this time, get to 300 P without any rest.

[ards] 01/2/2013 15:40

nice looking chart with break of icho moko cloud. target 190

[undervaluedassets] 01/2/2013 12:26

Cheap stock for what you are getting. . .

[aylingd] 31/1/2013 10:47

One of JPM's top picks.



D.

[salpara111] 31/1/2013 10:31

Don't know what to make of this.
It is always more difficult to value any stock that does not pay a divi.
After the last results the share price was pretty stable but then somewhat unexpectedly started diving, the share price is still below the level that I sold out at for a loss last year and I have to say that I am not clear that there is anything here to encourage me to get on board again.

[luminoso] 31/1/2013 10:17

More of the same. Volatility.

[togglebrush] 31/1/2013 07:22

Q4 2012 Trading Update

31 Jan 2013

Gem Diamonds Limited (LSE: GEMD) reports a Trading Update for the fourth quarter period 1 October 2012 to 31 December 2012 ("Q4 2012") ("the Period").

During the Period:

Letšeng:
•An average value of US$1 703 per carat was achieved for the 3 exports during the Period (US$1 673 per carat in Q3 2012 and US$2 542 per carat in Q4 2011).
•10 rough diamonds achieved a value in excess of US$1 million each in the Period (10 in Q3 2012 and 10 in Q4 2011), a total of 39 for the full year 2012.
•31 rough diamonds achieved prices greater than US$20 000 per carat in the Period (34 in Q3 2012 and 46 in Q4 2011),
•A total of 171 rough diamonds greater than 10.8 carats in size were recovered in the Period (180 in Q3 2012 and 168 in Q4 2011) totalling 647 and contributing 73% of Letšeng's production value for the year.
•Operational improvements to reduce diamond breakage underway.
•Good progress with procurement of secondary crushers for use in Plants 1 and 2, which are on target for installation by the end of Q2 2013.

Ellendale:
•The sale of the Ellendale mine to Goodrich Resources Limited was completed on 31 January 2013 for a total consideration of AUD14.4 million.

Ghaghoo:
•Steady progress in the development of the sand portion of the decline tunnel, with approximately 40% complete as at end of Q4 2012.
•Construction of the Plant is substantially complete.

Group:
•Tragically one non-mining fatality occurred at Letšeng on 15 December 2012.
•8 Lost Time Injuries (LTIs) have occurred in the Group for the year to date.
•Zero major stakeholder and environmental incidents have occurred year to date.

Cash:
•The Group has US$73.0 million cash as at 31 December 2012, of which US$67.0 million is attributable to Gem Diamonds.

Financing:
•In addition to the M250 million (US$29.5 million) 3-year unsecured revolving credit facility at Letšeng, Gem Diamonds has concluded and signed a US$20 million 3-year unsecured revolving credit facility with Nedbank Capital (a division of Nedbank Ltd), which is available for draw-down.
•As at the 31 December 2012, M25 million (US$3 million) of the Letšeng facility was drawn down and subsequently repaid in January. As at the date of this Trading Update, no amounts are drawn down under either facility.

Gem Diamonds' CEO, Clifford Elphick commented:

"We have continued to see a strong operational performance in the fourth quarter at Letšeng, in line with expectations. The fourth quarter of 2012 saw a continued strong operational performance with carats recovered increasing over the prior period. The Company also saw a steadying of diamond prices at the three Letšeng tenders held in the period. As we move into 2013, the market appears to be seeing a positive improvement over Q4 2012.

We continue to look at ways to enhance and optimize our portfolio of assets and as such are pleased to have concluded the disposal of Ellendale, allowing us to focus on our core assets. This will enable the Company to focus both capital and management resources on these assets, as we look to realise value from the world class Letšeng mine and our development project, Ghaghoo. Project Kholo remains a priority for Gem diamonds and we continue to proceed with selected critical path items ensuring that we are able to effectively accelerate progress at Letšeng when we see a sustained improvement in the global economy.

Regrettably, a non-mining fatal accident occurred at Letšeng in December 2012. A full investigation into this accident was conducted and our deepest condolences go to the family of the deceased."

31 Jan 2013 Q4 2012 Trading Update

[wantonhearts] 30/1/2013 13:20

So does anyone have a handle on this GEMD's fundamentals? What can we expect so far as tomorrow's trading update is concerned?

A lot of big buys +165p over the last week or so... One can only assume that a pleasant suprise may be on the cards.

ATB,
WH.

[wantonhearts] 30/1/2013 13:07

So does anyone have a handle on this GEMD's fundamentals? What can we expect so far as tomorrow's trading update is concerned?

A lot of big buys +165p over the last week or so... One can only assume that a pleasant suprise may be on the cards.

ATB,
WH.

[don777] 28/1/2013 14:30

it seems we can back to 200 P this Friday.