Gem Diamonds Share Discussion Threads

[ukgeorge] 22/3/2019 12:11

Thanks, found the tweet, on one tweet it said first 100+ct of 2019, which is a bit disappointing.

The stone in the picture looks great

Roll on finding a few more

[davethehorse] 22/3/2019 11:45

Yes saw it on twitter first but also on their website

[ukgeorge] 22/3/2019 11:39

Thanks Dave, was that on twitter?

[davethehorse] 22/3/2019 11:12

A high quality type 11 161 carat recovered at Letseng by Gem yesterday I hear...

[davethehorse] 22/3/2019 10:15

That's more like it, strong support at 90p and weak holders at that price shaken out it seems.

[davethehorse] 20/3/2019 09:37

A 5.5% drop at the open before any trades after a strong up day yesterday, ummmm... very easily manipulated this stock...

[ukgeorge] 20/3/2019 09:07

As example two trades today 188 shares and 4k so under £4k worth.

[ukgeorge] 20/3/2019 09:03

such a volatile share, moves on tiny volume.

[davethehorse] 20/3/2019 08:40

What happened?

[davethehorse] 19/3/2019 16:40

Strong day :-)

[ukgeorge] 19/3/2019 10:05

roll on a £

[davethehorse] 18/3/2019 18:13

Certainly should bounce from here, shouldn't have dropped that much in the first place IMO. Suppose it will struggle to break back though 100p now though.

[ukgeorge] 18/3/2019 16:45

Fingers crossed this bounce continues over the next couple of days

[davethehorse] 16/3/2019 17:53

Any guesses what GEMDs Ghaghoo mine might fetch.? They seemed confident they would secure a buyer this year on the analyst call the other day. They paid 35m dollars originally I think.

[davethehorse] 16/3/2019 09:29

They keep saying on the presentations that I have seen that the money is made on the number of quality stones recovered in the 20 to 60 carat range, the huge specials make the headlines but they say they are not critical for a good profitable year. We will see but obviously recovering big, quality 100 carat plus stones achieve top dollar and like the fancy pink, help with the dollar per carat price ratio at year end.

[ukgeorge] 15/3/2019 15:56

I think part of the reason for the share price weakness is that despite 2018 being a record year in terms of exceptional stones found the end profits were ultimately not that much and no dividend.

What are they going to be at the end of 2019 when we are mining a lower grade area. The mine could even be loss making.

I missed the call on wednesday, so they may have given more detail there but I really don't like the way they don't give much guidance on what is the cost of this $100M cost saving scheme.

[ukgeorge] 15/3/2019 13:32

the spread on these is shocking any decent buying and they will be straight above £1

[ukgeorge] 15/3/2019 10:22

88.8p, lets hope it brings some luck....or three fat ladies...

[davethehorse] 15/3/2019 07:44

Something that did come out of the conference call on Wednesday was that they are mining a lower grade ore area in the first 6 months of 2019 and that the 2nd half was expected to yield better stones than the first. That said the lower grade ore can yield some nice stones as they have found before. The main thing holding the shares back is probably sentiment in the sector with diamond prices but GEMD should not be as exposed to that as most with the high quality stones they recover.

[davethehorse] 14/3/2019 17:04

Who knows, really have no idea which direction its going, on all known info it shouldn't be going down but the market seems to think otherwise. There should be some good news flow in the next few months, the extension of the mine lease and the sale of the mine in Botswana, both should generate a positive share price reaction on release (I hope!)

[ukgeorge] 14/3/2019 16:01

80p looks like the logical place for strong support on the chart. Although hopefully a bounce will come before that.

[ukgeorge] 14/3/2019 15:58

they could dig up the ark of the covenant and the shares would still fall......

[davethehorse] 14/3/2019 11:09

Personally from the research I have done I expect diamond prices to start improving from this year across the board with several mines closing over the next few years reducing the number of diamonds on the market. Letseng's quality diamonds are always going to sell well to their clients and I dont see this price weakness reported by Rapaport effecting GEMD too much.

[ukgeorge] 14/3/2019 10:56

From share price Angel

Gem Diamonds (GEMD LN) 94.8p, Mkt Cap £125.3m –Pink diamond sale sets record price per carat for Letseng mine

• Gem Diamonds reports that the sale of a 13.33 carat pink diamond from the Letseng mine for a total of US$8,750,360 has realised a “record dollar per carat price of US$656,933 for a Letseng diamond”.

• To put this sale into context following the release of the company’s 2018 annual results yesterday, this single diamond has realised the equivalent of approximately 3% of the company’s 2018 revenue of US$267m.

• We note that in the March 2019 edition of the highly respected specialist diamond industry “Rapaport Magazine” the “RapNet Diamond Index” shows a declining trends in the prices of both the larger stones greater than 3 carats in size and in the smaller stones less than 0.3 carats.

• Index levels for the smaller stones have declined by 0.33% during the month to 10th March and by 9.11% over the year while the larger stones are shown to have declined by 0.52% over the month and by 6.51% annually.

• Intermediate sizes of diamonds appear to have shown greater price stability with 0.50 carat stones declining 2.87% and the 1 carat diamonds declining by 2.61% respectively over the year.

Conclusion: The Letseng mine continues to deliver large, valuable and high quality diamonds and despite softening in some parts of the diamond market we expect unique diamonds like the recently sold pink stone and the 15 stones larger than 100 carats produced by Letseng last year to continue to command premium prices