Gem Diamonds Share Discussion Threads

[alan@bj] 01/10/2015 16:44

Salpara - if you're still looking in here you must be so pleased you bailed. I wish I had too!

[alan@bj] 01/10/2015 10:27

Well there's another month to go before the next IMS assuming (as in 2014) one is issued early November.

[cestnous] 01/10/2015 09:31

Petra down about 35% recently. Sentiment not good atm, but will become a 'buy' at some point in the future especially if there's good news from Ghaghoo. Patience needed while you watch.

[paul the octopus] 01/10/2015 09:25

It needs to hold £1, otherwise ...

[dr_ex] 25/9/2015 16:41

i guess we go down to a £1 now.

[dr_ex] 25/9/2015 12:22

loads of little trades going through today. i wonder what thats about

[alan@bj] 18/9/2015 11:46

Drop today reflecting results from Petra Diamonds.

[undervaluedassets] 16/9/2015 10:23

intestingly this stock often has a big rally after everyone has hit the "despair" button on this board.

There has been quite alot of despair here lately .

That coupled with pretty decent results and the now news of the great price achieved for this enormous stone leads me to conclude that everything is set up rather nicely here. .

[cestnous] 15/9/2015 14:50

Biggies like that are so rare that they always go for a good price. More concerning is the retail markets apparent preference for coloured gemstones atm.

[undervaluedassets] 14/9/2015 16:25

$19 million . . carat for carat that must be up there with the most money ever paid for an uncut diamond.

And in what is a weak market for diamonds ... incredible

[alan@bj] 14/9/2015 12:12

The 6th November 2014 IMS reported that a 197ct diamond recovered in July 2014 had achieved a price of $10.6m, so they achieved almost double for the latest whopper. We really need news that Ghaghoo's water ingress problems have been solved and production is achieving target though.

[undervaluedassets] 14/9/2015 08:43

$19 million for one stone.

Prices for top stones remain strong

The franchise at Letseng is unique and will remain so.

Lawrence Graff is a patient long term investor here.

His judgement is peerless in my view.

When the sentiment for miners changes this stock will out perform

[salpara111] 14/9/2015 08:38

That is one hell of a payday!
Nice news but sadly I am guessing that it wont lead to a re rating of the stock so I will remain a watcher for the moment.

[resourceful] 11/9/2015 15:56

this is awful
whats wrong
is ghagoo a dog

[alan@bj] 28/8/2015 17:54

All the best Salpara. I'll take a look at OPAY.

[salpara111] 28/8/2015 16:36

For me it is not so much an issue with the business but what is beyond their control.....market demand.
They seem to be pinning their hopes on increased demand from emerging markets to bolster prices but personally my view is that emerging markets are going to struggle now that the credit cycle is about to turn(notwithstanding Chinese inspired hiccups!)I don't expect demand growth and recently read an article on Bloomberg I think talking about how De Beers were pulling supply having already cut production targets.
From a financial perspective GEMD is in great shape compared to the big commodity miners out there but until we see a sustainable increase in demand prices are not going to rise.
Doubtless the share price will bounce hard now that I am out but I switched to OPAY yesterday and am already well up so happy to be out now.
It is never nice taking a loss but putting the money to better use is invariably the best option.
Good luck to all those who stay in, I will be keeping GEMD on my low level watch list.

[siboat] 28/8/2015 12:23

Sold half at 125 and held on with the other half which hit my stop loss at 121 lol. Might leave mining stocks alone from now on until I understand them a bit better. I think the flooding problem isn't going away which is probably the deciding factor in this falling share . Might buy back in if it gets sorted but it seems like a major issue to me. Couldn't take the risk of another drop past 107 like it has in the past. With the drop in the markets recently have used the money to diversify my portfolio instead and bought into a couple of promising aerospace and defense stocks . Meggit and Senior. Good luck to all brave holders of Gem Diamonds

[alan@bj] 28/8/2015 10:45

Salpara - I haven't pressed the abort button yet, but my finger's hovered over it a couple of times. If your luck's anything like mine, this share with fly now that you've sold.

[salpara111] 27/8/2015 13:16

Well, that is me out for a loss.
I have invested twice in this company and lost money on both occasions.
I really don't see a bright future here but if they do manage to turn things around I would consider investing again.

[salpara111] 22/8/2015 10:25

I note that they have chosen not to provide separate financials for the two mines and I imagine that it is because Ghaghoo is in fact loss making at current prices which is pretty embarrassing considering the huge capex spent over the last 5 years bringing it on line only for it to start up when we are seeing a slow down in demand.
It is true that they are still in a pretty good financial situation compared to gold and platinum miners but equally it now appears to me that it is going to take quite some time before we see a pick up in prices.
I maintain my stance that I will sell when I see another opportunity.

[nehpets81] 21/8/2015 15:41

This is an interesting one. The performance at Letseng seems to be very robust - the prices for their diamonds still seem to be fairly good, although they have slipped a bit. It also seems like most of the upgrades have now been completed so there will be less cash going on capex at the plant going forward.

Ghaghoo is another kettle of fish entirely though, problems with water ingress on the construction side and really poor prices realised at the last auction. I see management have stated this was due to lower quality diamonds being sold so the next auction of Ghaghoo stones where the "higher" quality diamonds are sold will be very interesting I think.

There is still plenty of cash and some headroom in the debt facilities but any further reduction in prices of the Letseng diamonds could really hurt GEMD as it is definitely carrying the other mine at the moment.

[salpara111] 19/8/2015 17:58

The stock is cheap but there is a good reason for that.
I guess it really comes down to whether you believe that demand is going to improve in the next year and personally I don't so I will look to exit as soon as I identify another target for the money.
We are about to see a turning in the credit cycle and that means trouble for the big emerging markets where they claim the additional demand is going to come from.
This has turned into a classic "Jam Tomorrow" stock for me and after more than a year of holding I am now most likely to exit with a loss despite only having a buy in price of 141.
If they do turn the corner I would certainly look to reinvest but there is no point is sitting waiting for another year or more for it to turn the corner.

[alan@bj] 19/8/2015 17:43

Investors Chronicle updated its view this afternoon. The summary reads:-

"Management expects to increase throughput substantially at the Ghaghoo pit during the second half of this year, but they may opt to hold back on selling consequent production to the back-end of this year if prices have not recovered sufficiently. The shares are trading at an undemanding 8 times forward earnings. We maintain our buy advice."

[cestnous] 19/8/2015 08:43

Personally, I do tend to the idea, "buy something that is going up, rather than something that is cheap." GEMD is certainly cheap and there is obviously a reason for that, though I'm damned if I can figure out what it is.

[undervaluedassets] 19/8/2015 08:16

creditable given pricing environment.

Letseng still churning out pigeon egg sized stones

profitable - cash rich and cheap.