Gem Diamonds Share Discussion Threads

[wigan49] 17/12/2014 07:36

Hello,
I have just started using ADVFN to research despite having been a member for quite some time. But one thing I just noticed...where are the share prices displayed on the share thread? For example, where is the share price on here at GEMD?
Help most appreciated

[alan@bj] 15/12/2014 10:30

Good move up this morning.

[alan@bj] 11/12/2014 18:46

One of Investors Chronicle's Tips of the Week.

[luminoso] 22/11/2014 14:14

PDR has always been a tip sheet and newspaper darling. I guess there's more PI interest over there than here.

[salpara111] 14/11/2014 11:11

Until they pay a divi the share price is not underpinned.
If you strip out cash then the enterprise value is pretty undemanding for current turnover/profits.
As long as the Botswana mine ramps up on target over the next 6 months profitability will rise regardless of any minor softening of diamond prices.
Clearly any major drop off in diamond prices would have a major impact on profitability.
I guess my main question is why Petra Diamonds has performed so much better over the last year in particular given its similarity to GEMD.

[pj 1] 14/11/2014 10:39

free stock charts from uk.advfn.com


Interesting area for the share price Been on my w/l since last update, thought the presentation was good. Not sure if to get out of natural resources etc though, they never do what I want! :-//

[nehpets81] 12/11/2014 14:29

Although the long term picture here looks great, I think the softening market for diamonds is a short term issue, particularly for the lower quality Ghaghoo diamonds when they finally get going after the water problems.

Also, I guess it's possible that the numerous upgrades to infrastructure could have a short term affect on production levels.

[resourceful] 07/11/2014 09:29

you guys are nuts
something is wrong
read between the lines

[undervaluedassets] 06/11/2014 13:01

Update was fine.

And a rebuttal to the descending share price.

deeply profitable and set to remain so.

[salpara111] 06/11/2014 08:29

Bit of a non event update but given the huge drop off in the share price over the last month I don't feel like selling
I guess the main thing spooking the market is the suggestion that diamond prices are softening like gold/platinum/silver etc.

[pamelajane] 06/11/2014 08:26

Just looked at Level 2. Sell side looks strong unfortunately. In the short term, I think worries of weakening market and slightly lower production levels will mean the share price will go down. But big positives for me are new mine ramp up and dividend. Will add some more if it goes to 140p support x

[resourceful] 06/11/2014 08:12

come on
we are notb hearing about Ghaghoo
no production I hear

[jaws6] 06/11/2014 08:04

I missed that line. need to read again on dividend
edit-- found it.. thanks

In March 2014, Gem Diamonds' Board of Directors announced its intention to pay a maiden dividend to shareholders based on the 2014 financial year results. The Group remains on track to meet this objective.

[pamelajane] 06/11/2014 07:53

Great update, all on track and confirmation of dividend :) x

[undervaluedassets] 04/11/2014 08:27

An excellent article which illustrates why not all diamonds (and for that matter not diamond mines) are created equal.

very happy to be invested here and have been topping up..

[melody9999] 04/11/2014 06:08

I bagged a quick 10K shares too. Been watching for a while.

[pamelajane] 03/11/2014 19:25

John Rosier increased his holding in GEMD today x

[undervaluedassets] 31/10/2014 13:22

This always gets tarred with same brush as gold and it just ain't.

This is play on the number of billionaires in the world.

And that number only increases.

It is only billionaires that can afford the extraordinary stones that this mine produces.

[alan@bj] 29/10/2014 16:09

Yes - I think the p/e ratio is 17 based on historic performance but is expected to drop to 11.2 if EPS double to 31.8 cents. Let's hope they achieve that. Good news about Ghaghoo opening.

[p@] 29/10/2014 15:26

alan-pe of 11.2

Gem Diamonds (GEMD)

On Friday, Gem Diamonds (GEMD) announced that its Ghaghoo mine in Botswana, the first underground mine in the country, had been officially opened. Production should hit a rate of 60,000 tonnes a month by December 2014, with first sales expected by the end of the year.

Gem also joins Paragon in Lesotho, where it operates the 70% owned Letseng mine, which is pegged to produce up to 100,000 tonnes this year. Letseng is well known for its large, high value diamonds. But Westhouse Securities warns that the bulk of the company's revenue comes from these big finds, so income is lumpy.

After impressive first-half results, Gem looks on track to introduce its maiden dividend at the end of this year, especially with the strong cash flow generation it displayed in the period. While Westhouse maintains its 235p target price, it has lowered its guidance to 'add' from 'buy', due to recent share price strength, which saw it rally by 40% since mid-June.

With EPS expected to double to 31.8 cents, the stock is trading on a price/earnings (P/E) multiple of 11.2 times, with an EV/EBITDA ratio of 3.2.

[pamelajane] 29/10/2014 15:19

If it can't hold 160p, then sadly looks like it will go to 140p ish. Shame as good strong company. Perhaps IMS can lift x

[salpara111] 28/10/2014 11:27

I do find it confusing that we keep hearing that going forward there are supply constraints and as the middle class in China continues to expand rapidly and the US economy improves we still see pricing weakness. This suggests to me that supply is not the issue that many in the industry seem to feel it is.
I have been in here for so long that I guess I will wait out the next 6 months as the new Botswana supply comes on line hopefully that will give a real boost to the share price
I do find it confusing that Petra trades on a much higher p/e than GEMD but I can tell you which I would have rather bought last year and it isn't GEMD!

[alan@bj] 28/10/2014 09:29

Petra is on a P/E of 27 and we're on 17. Their results were out yesterday. This is what The Times Tempus column said about them:-#
Revenue $472m Net profit $68m
Petra Diamonds is one of the bolder bets on gemstone mining and exploration. The FTSE 250 company has been investing heavily for years in rejuvenating its collection of old De Beers mines, and the latest figures for the September quarter suggest that the heavy capex may at last be starting to pay off.
Production grew by 2 per cent to a record 834,000 carats, while revenues soared by 55 per cent to $100.8 million, thanks in part to the sale of a 122-carat blue diamond from its Cullinan mine. (Petra’s mines disgorge more than their fair share of whoppers, which makes the revenue line highly volatile.)
There were encouraging production surges from the group’s three smaller mines, while Petra’s expansion plans at its two big mines — Finsch and Cullinan — are “firmly on track”, according to Johan Dippenaar, the chief executive. He is sticking with his production target of five million carats a year by 2019.
The price of rough diamonds has displayed its normal summer/ autumn dip, with Petra’s selling prices down by about 3 per cent compared with the first half. However, there is every reason to expect a firming as buyers build inventories in advance of the present-buying season. Petra looks inexpensively priced, given that it has reserves of 300 million carats. It may pay a dividend from next year, a year earlier than planned, which would help to give the shares a stronger underpinning. The downsides are labour relations in South Africa, political and currency risk and the danger that the upfront investment won’t pay off in full.

[salpara111] 27/10/2014 16:36

The way it is falling we will soon be back at 140 again!
That divi cant come soon enough!

[luminoso] 24/10/2014 18:48

Thanks for the link,eeza. The Westhouse comment about relying on big finds leading to lumpy revenue may be the reason for GEMD lagging behind Petra in investor popularity. However, Petra always seems to be a darling of tipsters.