Namakwa Diamonds Share Discussion Threads

[123asd] 08/9/2011 10:36

Eduard Prutnick: Hobby - social engineering.



Oh Dear!

[topnotch] 08/9/2011 10:17

Induna123 >> MTA looking interesting and have put it on my watchlist - Thanxs!

BTW thought Liam was shorting @14.25 so technically still in profit

Also, surprised it hasn't risen higher on the back of todays announcments so market must still be digesting the news

15p looking like a new resistance/support level but if this gets a write up in the press over the weekend then it may be breached on Monday.

Still have not bought any and not really bothered, as plenty of other stocks in the barrel to choose from - MTA a distinct possibility

Will keep a close eye on this one as it settles down - currently a bit too volatile for me

Lets see where it goes from here

[the merlion] 08/9/2011 10:16

A few relevant links:

Namakwa on YouTube:



Our new backer, Mr. Eduard Prutnik:





Richard Collocott, our very own "turnaround star":

[induna123] 08/9/2011 10:04

Is that tool Liam still about, lurking?

He missed the boat yet again. Instead of him sitting on the sidelines with his hands in his pockets, playing with his balls and acting like some guru, he's missed yet another opportunity to make a profit, unlike him I did.

Well done Liam, you're a star!

Take my advice mate, buy some MTA NOW before it's too late!

[mj19] 08/9/2011 10:02

Merlion your very upbeat about this stock from here. can only get better....

[falia] 08/9/2011 09:51

all buys showing as sells now

[the merlion] 08/9/2011 09:45

Selective quotes from the sodden envious.

Fantastic deal considering we now have only one focus and production will be revised to reflect this. Also, additional funds will be available from the sale of DRC assets when concluded and too with SA assets which will all help repayments. In fact obligations may be paid off a lot quicker than most may think.

We have the largest kimberlite in Africa you know, the 4th largest in the whole world and Mr Collocott is our captain. I suggest the envious look at what he did with Norilsk Nickel.

The best diamond play on AIM from this level.

[mj19] 08/9/2011 09:44

Thanks... guess there is hope for a recovery...

[nathand] 08/9/2011 09:38

MJ19

Everything other than Kao development has turned to sh*t in a mere six months in my opinion. Of course Kao development is dependant on financing so was itself at risk.

Hence the fall.

It's all in the RNS releases which would offer you some tangible facts to inform your investment decision, probably more so than an anonymous public internet forum!

[mj19] 08/9/2011 09:35

guys... did this drop from 60 just on financing issues...? I am thinking of buying want to get some facts can you help?

[nathand] 08/9/2011 09:33

RE:Above

Presumably they are providing $2.2M as (related unrealised and accrued profits).

Nice! Just gets better and better for Eddie Prutnik.

[nathand] 08/9/2011 09:25

Jarvirne have got a phenomenal deal at an eye watering 24% per annum secured on Kao itself, and a very decent chance IMHO of obtaining the resource in it's entirity next year.

(b) confirmation from the Company of adequacy of working capital for the following six month period (assuming the availability of the remaining Facility).

I'm also not sure where the 19.5p premium comes from for the Capitalisation? I make it 17.2p which is still a premium. Any one clear that up for me?

RNS Number : 4116N
Namakwa Diamonds Limited
01 September 2011

"This includes a c.US$17m trade payable in respect of capital invested by Jarvirne Limited into the Division".

RNS Number : 8449N
Namakwa Diamonds Limited
08 September 2011

"Settlement of Jarvirne's capital investment (and any related unrealised and accrued profits) in the Company's Trading & Beneficiation Division (the "Trading Investment") in exchange for the issue and allotment of an aggregate of 61,750,000 shares at an implied price of 19.5 pence per share, a 85% premium to the closing price on 7 September 2011"

US$17000000 = £10670900

£10670900 / 61750000 = £0.1728 = 17.3p

[mj19] 08/9/2011 09:17

this dropped from 60p was all about the financing?>

[sportbilly1976] 08/9/2011 08:53

Andy,

true - but they now place a large pressure on NAD to extract as much as possible, and quickly...it certainly looks as though many pi's are exiting this am on the news (possibly expecting better terms)...

[andy] 08/9/2011 08:45

The Merlion,

At least you aren't claiming a canny buy before the news was released!


Sportbilly,

The terms do look rather onerous, IMO.

However, if you can't raise the money elsewhere, what can you do?

[sportbilly1976] 08/9/2011 08:20

The 'interesting' bit in full:

"US$40m Facility

Pursuant to the Facility, US$23m will be made available to the Company between now and mid-November 2011, with a further US$17m conditional on: (a) the issue of the second tranche of 50,750,00 shares to Jarvirne, due in respect of the Capitalisation; and (b) confirmation from the Company of adequacy of working capital for the following six month period (assuming the availability of the remaining Facility).

Interest in relation to amounts drawndown under the Facility in the first year will be satisfied by way of an issue of 9,000,000 shares in the Company ("Interest Shares") following first drawdown under the Facility occurring. The Interest Shares are to be issued pursuant to the general authority given by shareholders at the last annual general meeting of the Company in December 2010. During the second year, interest will be payable on amounts of principal at a rate of 24% per annum, payable monthly in arrears. The loan will be secured against: (a) receivables owing by Storm Mountain Diamonds (Pty) Limited ("SMD") to the Company; and (b) a charge over the Company's shareholding in SMD, should the Company be able to obtain the necessary consents and approvals required in Lesotho. "

so a $9.6mln finance cost from Yr 2 onwards

From their Half year results:

Revenue $45.45mln
EBITDA $5.98mln

Based on production of 86,885 carats

Revenue was derived from:
Mine production $14.98mln
3rd party product $30.47mln (although this was down in line with mgmt decision to focus on mktg of NAD's mine production)

imo, unbless they can get production at the mine up considerably, they are likely to be trading on a considerable negative ebitda...

[the merlion] 08/9/2011 08:18

A better idea of Kao with a few short clips on YouTube:



Things have come a long way since this with a 500tph DMS plant to go along with the wet tertiary crusher which you see.

Anyway, production next month and sale of assets in DRC to look forward to where there is a very significant infrastructure and machinery ;-)

[nathand] 08/9/2011 08:18

I'm out at a loss, good luck to all holders.

Terms look desperate to me and I would say the chance of default is 50:50 at best.

Any delays at Kao, the sole potential source of revenue, and it will be the end for Namakwa as a going concern IMHO.

[the merlion] 08/9/2011 08:13

liam,

Sorry about your supposed short!

[123asd] 08/9/2011 08:13

14p? They must be kidding!

[the merlion] 08/9/2011 08:13

+33%

LOVE IT!

[liam1om] 08/9/2011 08:12

As this news sinks in I think people will realise its not quite as good as it seems and puts the company under enourmous pressure going forward.

[falia] 08/9/2011 08:12

mms trying to flush every 1 out before rising sp

[nathand] 08/9/2011 08:09

"During the second year, interest will be payable on amounts of principal at a rate of 24% per annum, payable monthly in arrears"

I was being concise, I appreciate that is an alien term to you.

How, exactly, does the full quote make it any better?

24% per annum is 24% per annum!

[the merlion] 08/9/2011 08:01

"During the second year, interest will be payable on amounts of principal at a rate of 24% per annum, payable monthly in arrears"

All the facts make all the difference and no need for selective facts from the sodden envious