Karelian Diamond Resources Share Discussion Threads

[johnnygrainger] 23/8/2018 22:07

Thought you’d nowt to do with it now Spence ;-)

[rbonnier] 23/8/2018 19:37

Only the announcement of a JV will shift the share price significantly up now as that would guarantee kdr is funded through to production .KDR would then have no problems at all raising cash at a higher share price shareholders would welcome such funding guaranteeing a company maker in the future .As it stands the company is so jaundiced even the announcement it has found the source of the green diamond would do nothing for the share price Its a jv or lose the lot situation imo.

[johnnygrainger] 23/8/2018 17:10

Have some interesting images showing works will upload when I get 5

[goldeneye5] 23/8/2018 15:41

Have we a shed load of green diamonds yet? Anyone here know what the drilling situation is? Are KDR on a long summer holiday? Why are they not updating shareholders or the market like other companies do?. They need to sort out their disconnect with the shareholders. PR!!!KDR attracted some attention ( at govt level) at previous PDAC, despite not having an official booth....sneaked in Finland map under the cgnr board.Could they merge cgnr and kdr? Stranger things have happened!

[ladybird1] 18/8/2018 09:25

Johnny. Yes I am invested - wish I wasn't but I failed to clear out earlier and a bit pointless now.

The majority of the placing (easy to get away?) will likely have been to punts from funds/sources putting up a fringe proportion of their portfolio as a bet at long odds.

You noted earlier the heavy, lost investment put in by earlier prospectors. You specifically refer to Mandy, who you say simply ran out of cash. KDR look to be very close to that position. You have posted long on the work still to do. If you look back at previous years' annual expenditure and add in their net cash/current asset shortfall in the most recent Accounts, they have very little left to fund it with.

A last roll of the dice? If they get a lucky strike, they're away. The odds must be heavily against.

Perhaps the next speculator, building on KDR's & Mandy's work, will hit the jackpot?

[johnnygrainger] 18/8/2018 08:36

Bonnie & Bird Neither of you have access to who took the placing shares. Let’s look at the facts. We know the board took 20% and we know certain notified shareholders increased there share. There was no new 3% holdings RNS. The Broker had a miserly £17k worth of warrants. I’ve read it again Broker warrants only £17k worth at 4.5p. Are you 2 invested here? because if I hadn’t researched you would have put me of buying.

[ladybird1] 18/8/2018 08:03

My interpretation, too, Bonny. Am mm working off part of the recent float for a client. Nine million shares outside the Board taken up in that placing. A very long way to go to clear them......

[rbonnier] 17/8/2018 22:43

The market has access to the free float from the recent placing .Price will firm up as soon as that stock pile runs out which wont be long now share price will start to pick up in September .

[ladybird1] 17/8/2018 17:16

Price is rock steady, stock seems readily available, so if it wasn't a sell somebody's offloading quite a lot.

[rbonnier] 17/8/2018 16:51

It wasnt a sell

[ladybird1] 17/8/2018 16:17

Good to see somebody's bought part of that 350-k share parcel sold the other day....

[goldeneye5] 16/8/2018 10:58

I wonder how much of a holding PJ has in KDR. He went from saying his kdr investment was a personal investment, he was buying on the market at every opportunity and emailing the company to get their website in order, a while back to never mentioning KDR again. Think he said it was best opportunity on AIM. Unusual how he went so quiet on KDR and never mentioned again.

[ladybird1] 16/8/2018 07:34

Ref. all the 'buys'. Amused to note the pre-pricing indicator just now marks the bid price right down, widening the spread downwards...... Based automatically, of course, on the previous buy/sell ratio as mechanically recognised.

[ladybird1] 16/8/2018 07:13

As two posters have confirmed the 350k was a delayed trade, very happy to accept that.

Such being the case, it ought perhaps to have been marked 'L' rather than 'O'?

The 350k represents 1% of the shares in issue, so a big buy. As Johnnie pointed out, adding the other undoubted buys and with the number of shares in the hands of over 3% holders, these would amount to a material slice of the free equity.

They buys scarcely moved the price. So the question must arise how are the mms. covering those buys?

[venomousviper] 15/8/2018 23:18

The 350k trade at 4.5 was a Buy it was a delayed trade and the buyer paid full ask of 4.5p at the time the trade was executed that's a fact trust me on that one .

[johnnygrainger] 15/8/2018 21:12

Why anybody here would want this to fail would be strange to say the least if invested. The company looks ripe for a JV to me. Even lahtojoki which is of least interest to me is so undervalued.

Mantle drilled 6 cores in 2009 after spending 2 years removing millions of tons of overburden. The cores were angled drills to test the near surface Kimberlite to see if it merited bulk sampling. The core KDR tested is near surface Kimberlite that is mostly made up of country rock. The sweeter Kimberlite at depth will be even more economic.

The economic downturn hit in 2010 and mantle ran out of funds. They had spent around £3million getting to this stage. Kopane were took over by firestone and lahtojoki was not pursued at that time as they had a fully operational mine that all funds were focused on in Lesotho.

Our board acquired not only the Lahtojoki exploration claim but also the mining licence for £50k. What fantastic business that was. Mantle had Completed a feasibility study which produced an economic 35Cpht at lahtojoki at a cost £700k as well as the millions spent stripping overburden and past encumbrnts to expose a drill ready pit with a vast amount of data.

Mantle did not get to work on the other assets.
Roy Spencer (Arctic Star) resigned when Kopane entered a JV with mantle. This allowed Kopane to concentrate on the Lesotho working mine, and to leave mantle with the responsibility to invest £5million to gain 70% of Kopanes finish assets. These included claims at Kuusamo and Lentiira.

The highest quality Kims in the Kimberlite fan showed that the discovery of the Lentiira field was not the source of these high quality indicators but proved a 160 square KM Kimberlite field emanated from the fan.


KDR took the Lentira field claim. You will see that the area of KDR claims In Kuhmo is between 120-150square KM covering the Railway fan. I believe that KDR did not take the Lentiira field to reassess the Kimberlite system. I believe they took that claim to pick up the railway fan which was sampled all the way to Riihivaara and the green diamond claim Kuhmo 1

KDR also took licences at Kuusamo but when the single eclogite grain was discovered in 2011 all other projects seem to be put on hold. It was very surprising to find eclogite-derived grains in that area, because the kimberlites found to
date in the Kuhmo-Lentiira-Kostomuksha area are very poor in eclogite component, being rather much more dominated by peridotite indicators." Eclogite mantle material is significant as it tends to be associated with a
much higher grade of diamonds than peridotite mantle material. Riihivaara sample of 20kg 51% eclogitic. Completely different animal to previous Kimberlites. Diamond indicator Group 1 type eclogitic garnets abundant.

The time consuming licensing applications then began to acquire exploration claims in Kuhmo.

Clearly our company don’t have the funds to drain the lake and start the merited drilling campaign at Lahtojoki We have no idea if due to cash flow Riihivaara has been delayed but with the green diamond discovered 8km away and the mineral chemistry at Riihivaara and Kuhmo 1 we have all 3 exploration claims at drill ready stage to prove up.

Now if a major is not on board with this it begs the question as to why has the board not been actively seeking a JV with funds clearly not available to complete a possible multi diamond producing Provence.

Any way that’s my summary as we stand

[spencertracy63] 15/8/2018 19:34

And if they offloaded such a big amount to balance the books! there must be a willing buyer. I wonder who it was? Was it me?

[spencertracy63] 15/8/2018 19:31

Bird lady why are you obsessed with this failing?
It's un-natural to me, bonkers really.

[ladybird1] 15/8/2018 17:40

Johnny You've lost me. The trade was after two smaller buys at 4.65; difficult to imagine a substantial trade of 350k shares being satisfied at a lower price just afterwards, so to me a clear sell. The only trade afterwards again a buy at 4.69. Looks like a classic piece of somebody taking the chance to offload to balance a mm's book. Happy to be corrected if I'm up the pole.
Thanks.

[johnnygrainger] 15/8/2018 17:23

Ladybird check time of trade. Delayed

[ladybird1] 15/8/2018 16:02

350k surely genuine sell, so not a particularly unbalanced position for mms.

[johnnygrainger] 15/8/2018 14:02

Price hit 7p prior to discounted placing MM had no stock. If the placing shares are in sticky hands then someone is short. Over 4% company purchased last few days, buys showing as sells. Nice bit of news from KDR and in the words of Clubber Lang I predict PAIN

[johnnygrainger] 15/8/2018 12:51

hxxps://www.diamonds.net/news/NewsItem.aspx?ArticleID=62677

While it’s true that value comes from rarity, no natural resource lasts forever, and the rare is becoming even rarer. Diamond production is set to peak in 2019, after which it will begin a steady decline. De Beers estimates global output will fall by 1% to 2% a year until 2030, while some analysts predict as much as a 5% annual drop.

Regions that have heavily dominated the trade over the last five decades are now reaching the end of the line, and new exploration projects may not be able to compensate fully for their loss.

Rio Tinto’s Australian asset, Argyle (pictured), is expected to close in 2020, while its Diavik deposit in Canada’s Northwest Territories (NWT) has a mine life through 2034. These resources are a drop in the bucket in terms of their contribution to Rio Tinto’s finances, but the same can’t be said for their impact on the industry. Argyle’s 14 million-carat yearly production makes up around 10% of the world’s total annual diamond output, and the mine is a dominant player in the colored-diamond market.

Other NWT assets, including Dominion’s Ekati mine and the joint Mountain Province-De Beers venture Gahcho Kué, are also expected to run out around 2034. And while extensions have been discussed, they have yet to come to fruition. A case in point is the Jay pipe expansion of Ekati, which has been suspended several times while Dominion conducts viability testing.

New horizons to explore

As these old and loyal fields dry up, newer pastures are taking their place. But newer doesn’t always mean greener. Angola, a diamond-rich country, has long been a questionable prospect due to stringent rules that make it difficult for potential miners to invest in projects. The Central African Republic (CAR) only recently came into line with the Kimberley Process, and in any case, its diamond reserves are not as great as other countries’.

Dmitry Amelkin, head of strategic projects and analytics for Alrosa, nonetheless thinks Angola and other, less-explored parts of Africa will help compensate for the decline in “great measure.”

“I think Angola is a standout…given the geological endowment that’s in the country,” says Kieron Hodgson, executive director of commodities and mining research for investment bank Panmure Gordon. “That will definitely be attracting new capital, given the size of deposits…and the economic viability of those deposits.”

Hodgson also thinks the African nation of Lesotho could help counterbalance the deficit in other countries, as well as relatively unexplored regions of Russia.

However, the shift won’t happen immediately, nor will it be a simple endeavor. While almost all economically viable deposits can be mined, says Hodgson, the investment required to establish them can often exceed the return.

“Mining in alluvial areas like Angola, Democratic Republic of Congo and CAR is a completely different game,” says Peter Meeus, chairman of the World Diamond Mark and special government adviser to the CAR diamond industry. “The sector stands for the largest changes to come in the next decade. At the same time, these procedures cost money and are not too easy to apply.”

Jean-Marc Lieberherr, CEO of the Diamond Producers Association (DPA), agrees. “I think there is likely to be a shift toward new locations,” he says, but notes that “diamond exploration is very difficult, and the ‘easiest’; locations have already been extensively explored. Now explorers are moving to places that are either physically more difficult — deeper or more remote — or to places which have previously been inaccessible for political reasons but which are now opening up.”

Ripples through the pipeline

Beyond the impact on miners, what does the potential shortage mean for the industry as a whole — for diamond manufacturers and jewelers? What about for the average consumer? Will sourcing become more difficult, and will prices inevitably rise? Experts seem to have mixed feelings.

While Hodgson doesn’t fully believe in an imminent shortage, he concedes that “it’s sort of an economics 101. There’s a shortage potentially at certain price points, but in a different pricing arena, there may not be a shortage, so it’s...in the eye of the beholder.”

Amelkin says the drop in production will lead to a shortage, one that will mean an increase in prices for rough, while Boris Sinitsyn — a metals and mining analyst with VTB Capital — says its biggest effect will be on the end consumer, as the scarcity will surely push the price of diamond jewelry up.

The real consequences won’t be felt until retailers have to tell consumers something isn’t available, adds Meeus. At that moment, he says, “scarcity will become a reality, not a mere expectation,” and that “should support price increases.”

Lieberherr thinks any price changes will be gradual as the diamond supply decreases, and therefore won’t be as noticeable down the line. That said, he believes price inflation is good — not only for the industry, but for the diamond-buying public.

“An environment in which prices are rising modestly is beneficial for the industry and for consumers alike,” he says. “Slightly rising prices underscore the value proposition of diamonds.”

A boon to synthetics?

One particularly timely question is the effect a diamond shortage will have on the synthetics industry. Will lab-grown stones gain a stronger foothold in the wake of depleting natural supply and rising prices?

In that regard, most of the experts agree the natural-diamond trade has nothing to fear from its lab-created competitors. At best, they predict synthetics may take over the lower end of supply.

“I do think…that synthetic production would displace material volumes at the lower end of the value chain, just simply on an economic basis,” says Hodgson.

Lieberherr feels synthetics have a place in the fashion jewelry market, as does Michael Minister, owner of Canada’s Maple Leaf Diamonds — but “not for engagement or bridal,” Minster says. Sinitsyn and Meeus also see lab-grown as a lower-end substitution or “niche” product, but not as an actual competitor, regardless of the supply.

So what will actually happen as some of the world’s biggest mines turn their lights out and shut their doors?

Diamond resources might not be forever

“I think the sector is in a period of change,” says Hodgson, “but it doesn’t really know, in my view, what the change will be. I like to think positively.”

[kevjones2] 14/8/2018 16:39

Idris Elba has turned down the James Bond part. He's opted to work for KDR Covert Operations Unit instead.