Gem Diamonds Share Discussion Threads

[ukgeorge] 21/3/2016 09:43

I can only sell. This is with Iwebsharedealing, part of halifax.

They must be imo short of stock, maybe about to get a spike higher.

[ukgeorge] 21/3/2016 09:39

just tried too top up and can't on line, no reason given

[ukgeorge] 21/3/2016 09:29

good volume couple of daya ago, highest since april 2015. Is this finally the turning point

[ukgeorge] 18/3/2016 11:27

slowly slowly catchy......

should hopefully break the down trend in the next few weeks and maybe do some catching up on the likes of petra

[weemonkey] 17/3/2016 16:32

AAL - who are in effect Debeers - and massively lossmaking have been on a tear lately.

whilst GEMD who are profitable . .

Patience. .

[undervaluedassets] 17/3/2016 08:24

The letseng stones are not subject to the supply and demand headwinds experienced by the rest of the diamond market.

Due to size and clarity of letseng stones the prices continue to hold up very well and there is a stampede whenever a 100+ carat stone comes to market.

Given letseng factor, recent results and very modest share price and the trend of finding more large stones thanks to project kolo I think that on risk reward basis this is not bad place to take a position here.

[nehpets81] 16/3/2016 23:30

The results do look pretty solid but its worth bearing in mind that because Ghaghoo is not yet in commercial production, the $15.8M net operating costs from the mine bypassed the income statement and were capitalised so the headline profit is just from the Letseng mine where prices held up very well considering the market conditions.

[dazah] 16/3/2016 16:17

Increasing profits at Gem
Gem Diamonds(LSE: GEMD) released full year results yesterday that were very well received by the markets. Profit for the year (2015) was US$67.4m, with earnings per share up 26% Y.O.Y to 30.2 US cents. There was another highlight in the results and that was a 5 US cents dividend and a special dividend of 3.5 US cents.
Gem's CEO Clifford Elphnick commented on the results saying 'Although 2015 was a challenging year for the diamond mining industry, it is encouraging to report that the Group has delivered a strong set of operational and financial results'
Gem's shares responded well yesterday and it looks like the company will deliver solid results well into the future. This scope for growth is highlighted by three broker upgrades yesterday with target prices between 181p-270p. Gem's current share price is 105p.

[alan@bj] 16/3/2016 14:26

There's a write-up in Investors Chronicle today. The summary reads:-
"Despite management's renewed commitment to dividends, Gem Diamonds' shares remain on just nine times this year's forecast earnings. They also remain down on our original buy advice (176p, 11 Dec 2014), but puts the company wildly below average valuations for peers, which are similarly affected by the whims diamond pricing. Buy."

[undervaluedassets] 16/3/2016 11:36

Patience . Big jump yesterday on results. a little retrace normal.

Good results take time to bed down.

[salpara111] 16/3/2016 10:48

Taken some at 108. Initial target 128.

[salpara111] 16/3/2016 09:22

Hmm, on re reading the results I see that they suffered quite a substantial cash outflow last year which is rather concerning.
I would imagine that this year will be better as they move to a position where they are only engaged in essential capex at Ghaghoo.
Money spent at Lesotho would appear to be well spent in terms of returns so that is good.

[ukgeorge] 15/3/2016 15:25

I think that if resource stocks hadn't been so weak today these would be quite a bit stronger. Still 10% up is pretty good.

[woodpeckers] 15/3/2016 13:23

Running the ruler over Mothae.

Edit, sorry posted the wrong link!

[resourceful] 15/3/2016 12:31

well done
but
Gem must feel the cold wind from Lucara
50 x 100cts a year in the world
Lucara will double that
the divi keeps insts on board
GEM is a sitting duck if Lundin wants it ..but why bother

[undervaluedassets] 15/3/2016 11:27

Arguably best ever set of results - large stones, divi, eps.

And yet we are not far off worst ever price.

I am not going to hold my breath but if this an inflection point. . .

who knows

[weemonkey] 15/3/2016 10:52

Special divi gives yield of 6% and PER of 6.

In fact have I got that right. Seems very cheap given everything.

The resilience in the prices achieved for Letseng's peerless stones has been the foundation of this years good results.

[undervaluedassets] 15/3/2016 10:12

Just off conference call.

Strength in pricing of +100 carat diamonds very resilient.

Only 50 produced annually in the world.

scarcity keeps pricing up

As was pointed out there are 200 billionaires in Beijing alone

letseng produced 10 such 100 carat stones last year.

This is a mining business with a unique niche and franchise

[ukgeorge] 15/3/2016 09:45

Gem Diamonds (GEMD LN) solid 2015 results deliver EBITDA US$103m (cons US$95m) down 2% YoY leading to profit of US$67.4m up 12% and attributable profit post exceptionals of US$52m up 57% YoY. EPS pre exceptional items were up 26% at 30.2cps (Consensus 21cps). Management recommends a 5cps dividend with a 3.5cps special dividend. Management indicate that the diamond market conditions have started the year well but considerable uncertainty remains. Company balance sheet remains strong with US$55.3m net cash. Source: Company

Investec View: A solid result by the company and no doubt shareholders will appreciate the special dividend. We are also encouraged that Ghaghoo is being cut back since to date this has been a challenging investment and results imply that it may not be economic in the current environment so we are pleased that significant spending is not planned for now.

8.5 cents is 6p
30.2 cents is 21p.

So a PE ratio of 5.2 pretty good
and dividend yield of 5.5%

with a backdrop of improving diamond prices

[ukgeorge] 15/3/2016 08:41

just paid 109.4 for a few more.

[salpara111] 15/3/2016 08:28

Decent results, but clear that Ghaghoo is a real financial drag with prices achieved dropping through the year......I doubt that it is covering its costs at an average stone price of $150.
Having said that a strong set of results in a poor year.
I will probably take a modest stake.

[ukgeorge] 15/3/2016 08:16

109p to buy added a small amount