Gem Diamonds Share Discussion Threads

[ukgeorge] 04/3/2016 09:16

I'm similar hold a small amount, of gemd and they have totally missed the general rally in resources stocks. Tempted to sell and move on but think they will then shoot up. GEM has also not moved which is annoying. but happily I have a load of PDl which is easing the boredom of these

[salpara111] 03/3/2016 12:05

Interesting that PDL have rocketed from their low but Gemd is still stuck near its low.
Ghagoo is appearing to be a larger drag every day, but after spending huge amounts on its development they are kind of stuck with it.
Having invested twice in Gemd and lost money on both occasions I am not ready to get back on board but equally I do think there is an opportunity for it to rerate if we see a sustained rise in diamond prices.

[ukgeorge] 29/2/2016 15:36

about time these played catch up with pdl petra diamonds.

[alan@bj] 23/2/2016 08:44

Petra, not GEMD, but I've posted this from today's Times Tempus column because it has some relevance:-
While the price of every other commodity dug out of the ground by miners was plunging, diamonds were supposed to be an investor’s best friend.
It seemed that way until 18 months ago. Strong demand, wealthy buyers and an in-built restriction of supply meant steadily rising prices for diamonds. Then those prices collapsed and jewellers were sitting on mountains of unsold rings and necklaces. That is why Petra Diamonds, one of the better-performing miners in recent years, said yesterday that its first-half profits had gone missing.
Petra runs a handful of old De Beers mines, mainly in South Africa, and has proven adept at milking mature deposits that are too close to depletion for De Beers to be interested in. It recently bought from De Beers the above-ground tailings — a waste dump — at the famous Kimberley mines to complement its underground operation. It is a savvy operator and can be trusted to make the enlarged operations more than the sum of its parts.
That will mean nothing, though, if prices do not recover. Here, there is good news. Things appear to have stopped getting worse, at least. Petra shares have more than halved in the past year. Now is a good time to take a look.
MY ADVICE Buy
WHY Petra is poised for when diamonds regain their sparkle

[resourceful] 08/2/2016 11:20

letseng is a very low grade finite operation relying on the odd big stone
karowe is new,high grade,high % of Type 2s, and can double in size
$33m...less than the value of one big Karowe stone
Gem would love Lucara
So too would Petra

[ukgeorge] 03/2/2016 11:17

I think a merger between Lucara and Petra would make a quality company. Would have low debt, and a great growth profile. But I should think neither sets of management would want to take a back seat so see it as unlikely to happen.

I hold lucara, gemd and petra.

[clinton baptiste] 03/2/2016 11:15

Simple. To get their hands on Letseng, which is a profitable, high-value stone producer. GEMD declared a net profit of $33m in 2015, despite ongoing losses at Gaghoo. Karowe is a finite and diminishing resource which is probably being mined as quickly as possible. Lucara have set themselves up as a producer of large, high-value diamonds and are unlikely to find another Karowe through exploration. I'd argue that many GEMD shareholders would welcome a change in management, given the value destruction since listing.

[resourceful] 03/2/2016 10:04

why would Lucara buy Gem
they have one of the most profitable mines in the world
if they want more money expand Karowe
Why buy a lossmaker
the same applies to Petra
they should try to buy Lucara

[salpara111] 03/2/2016 09:46

Well, finally they are tacitly admitting that Ghaghoo is a loss making asset which is very disappointing considering the tens of millions spent developing it.
I have lost money TWICE investing in GEMD so I wont be taking a stake again any time soon.

[clinton baptiste] 03/2/2016 08:43

Can't believe Lucara aren't taking another close look at this.

[clinton baptiste] 03/2/2016 08:40

Gaghoo certainly not trivial based on the amount of money that's been ploughed into it. It's no surprise that the economics aren't working. Like KX36, the area is remote, the Kalahari cover is thick and the diamonds are simply not good enough to justify the expense to get to them. Like Lucara, GEMD is a one trick pony and there must be a good case for a merger and headcount rationalisation.

[resourceful] 03/2/2016 08:27

read more carefully this time
letseng only produced $5m net in Q4

Ghagoo must be losing money
28carats a hundred tons x 90% recovery = 25
at 150 a carat revenue $37 a ton
Costs $50
They will run out of cash if they don't stop developing Ghagoo

[resourceful] 03/2/2016 08:15

Ghagoo small
really only trial mine
lots of activity in the area
Petra have a discovery as does BCL

[alan@bj] 03/2/2016 07:37

Balance sheet remains strong, dividend maintained, Letseng production and prices holding up well, but Ghaghoo still a drag in present challenging market conditions. Good to see they've sealed the water ingress there, though.

[alan@bj] 22/1/2016 16:43

Well done SiBoat

[siboat] 22/1/2016 13:39

Sold out at 116.9 for a 12% profit in 1 day . Not because I don't trust the share but i just have a bad feeling about the overall market at the minute and would like some cash in the bank for some future buying power. Something feels very crashy at the moment. Will buy back in again if things look more bullish in the general markets.

[siboat] 22/1/2016 10:51

Here we go again!
I lost around 20%-30% on these a few months ago and kicked myself for not selling when they spiked up . But I still thought they were a good bet even after I sold so I have watched and waited and just bought in at 103.75, low and behold another spike! This time I have put on a trailing stop of 20 points, so the worst I can do now is about a 6% loss. Please be nice this time. Diamonds are forever!!!!
Oh! and they even dipped below 100 after I bought them as a test obviously.
Good luck to all holders especially those buying in at this new price.
It still feels like a bit of a punt which i really don't think it deserves now.
Diamond prices are down but there are still plenty of billionaires out there looking for the best stones , and Gem has a better chance than most of finding the big one. They have found 4 of the best 20 in the last ten years and have recently started to cut and polish their own diamonds to give them a better understanding of cost and value of big stones.

[ukgeorge] 22/1/2016 10:19

woop woop, I think is the technical term for the last two days.

[ukgeorge] 21/1/2016 17:07

nice spike today

[ukgeorge] 20/1/2016 15:39

well lets hope it holds the old lows. Or it will likely get nasty.

[ukgeorge] 18/1/2016 12:46

Have taken the plunge and bought some a 105p

roll on higher diamond prices

[ukgeorge] 15/1/2016 11:01

Getting tempted to buy in here.

Hopefully the 5p dividend will be maintained.

Diamond mkt reportedly id improving after debeers has cut supply

[alan@bj] 13/1/2016 09:38

We had quite a positive Q4 trading update 27th January 2015. We could do with an exceptional one this year.

[gnawe] 06/1/2016 16:34

AND THEY WONDER WHY PEOPLE DONT INVEST IN SHARES, ABSOLUTE MANIPULATION OF THE PRICE.

[undervaluedassets] 31/12/2015 07:21

Agree. . .

The disparity between price and value is at an extreme here.