Gem Diamonds Share Discussion Threads

[boonkoh] 02/5/2024 17:48

Debt is not a concern... Bank has the mine as a tangible asset collateral backing the borrowing...Plus the gross debt, at HY Jun24 is likely to be much less than the $30m-ish at Dec23...

[caiman47] 02/5/2024 16:43

Afriore would have to declare if they were making a bid as they are so close to the threshold.

Anyone else would need Afriore's approval for a bid and that would only come at a much higher price. Gem is not a company in any kind of distress.

Fundamental value does eventually get recognised. Look at AAL!

This is going to be interesting.

[dcroston] 02/5/2024 16:41

We need many more liquid trading days like today. The trading had been so thin for the last 6 months MMs have had a field day taking this down to ridiculous prices.

I'll speculate that the price will very quickly get back into the 20s without too much difficulty and it will still be vastly undervalued on its projected PE.

[mindthestash] 02/5/2024 16:31

Over 1m shares traded today?
Takeover stake building?

[citys2874] 02/5/2024 16:28

SHOULD BREAK 15.00+ TOMORROW

[caiman47] 02/5/2024 15:59

I still want to see the debt rolled over. This is still for me a significant risk.

Someone knows something though.

[bobex] 02/5/2024 15:08

My little secret: this share has kicked off very much after I sold ( I did so because I thought I was losing time by holding this C—p). Bought again tiny amount today: if this stock is ever going to go back real high it will take me along. GL .

[boonkoh] 02/5/2024 14:12

I guess I believe there are different tiers of the diamond market.My analogy would be the housing market. Factors that affect house prices in the £100k-£300k range are very different from factors affecting the £10m+ range. And price trends in those two can diverge quite differently. I think of the diamond market in the same way.

[dcroston] 02/5/2024 13:19

Yes, I accept that tracking the diamond index is somewhat of a redherring when taking into consideration the larger stones, especially ones > 100cts and considering that 70-80% of diamond sales come from larger stones but it still matters that prices stabilise to bring confidence to the diamond investor market.

[bobex] 02/5/2024 12:41

Oh dear… Some type has decided that enough private investors have been ruined???

[boonkoh] 02/5/2024 12:23

I think tracking market diamond per carat pricing is a red herring. As GEMD should see 70-80% of revenues from stones more than 10 carats. Whereas when you look at any "benchmark" of diamond pricing, the volume mix is skewed to less than 10 carats.This is evident just by looking at average pricing ($1000-2000/carat)in benchmarks. Compared to achieving $30k+ per carat for stones larger than 100 carats.Furthermore, man made diamonds are competing in the sub-10 carat market. Sure, the technology will get better and better to create 10+ carats. But that requires more specialist equipment, more complex process, and higher risk of imperfections the more carats you go in lab made diamonds.

[dcroston] 02/5/2024 11:56

A few things I want to see here to increase my confidence in the company in no particular order.

- Director buying
- Diamond prices stabilising/rising
- Chinese diamond market growth
- Eskom issue resolved, BIG one!

It would be interesting to know why there's been a greater success lately finding larger stones? It could be partly to do with the significant improvements that have been made to the way they process the ore?

Interesting to note significant cost savings on energy with no more use of diesel generators.

As already mentioned above, acquiring a mining fleet and transfer of mining and drilling contractors from Metacon is already seeing significant cost savings.

All in all, things look promising dependant on usual constraints.

Very undervalued company.

STRONG BUY

[boonkoh] 02/5/2024 08:32

Lots of tailwind here.Cheaper unit costs, with the big investment in Insourcing.Eskom now 30+ days without load shedding. The whole of 2023 had 30 days of load shedding free power.Geologically, might have hit an area rich in large stones. Reversion to historical mean.Lack of new investment into man-made diamond R&D due to plummeting prices. Means slower progress to grow stones > 10 carats in labs that are economical.

[mindthestash] 01/5/2024 22:14

Some of us have been here before. I hope you are correct.
Don't see general diamond prices heading up so reliant on big stones not investable

[kirk 6] 01/5/2024 17:07

Looks like this is going to rocket

[dcroston] 26/4/2024 14:59

MTT,

Nothing very surprising in the Q1 results. Company look on course for a nice recovery dependant on usual constraints. Large gemstones which make up 80% of sales still being recovered with a large stone still to be sold. If you listened to the last investor webcast you'll know there is a potential game changer in the offing. STRONG BUY.

[mindthestash] 26/4/2024 14:09

Market cap now £12m from 8p a share.

5 large stones last quarter sold for £18m.

Just goes to show what can happen when investors simply can not trust the directors.

[davethehorse] 26/4/2024 10:46

Looks as good as could have been expected, luckily they recovered some nice stones to sell in the quarter, next quarter could be more difficult?

[mindthestash] 26/4/2024 10:07

Well chaps
What do we reckon to the paragraph quarterly update.?

provided costs are controlled the large diamonds look to have sneeked us into profit and cash flow out of the negative?

Hanging on?

[davethehorse] 23/4/2024 18:00

Shocking diamond production report by debeers today....looks dire for the industry...

[mindthestash] 17/4/2024 16:37

Share options for our super successful CEO and CFO.
You've really got to admire their balls. Most humans would die of shame

[davethehorse] 28/3/2024 11:05

The fall continues, both for GEMD and the diamond index...

[mindthestash] 21/3/2024 10:45

Picking the bottom of this stock hasnt been a successful strategy but zeminski rough diamond index down circa 3% over six months and seems to level out a bit. no sign of heading upward though - in a trough?

[davethehorse] 21/3/2024 10:24

Double bottom on the chart...Will it hold...??