Namakwa Diamonds Share Discussion Threads

[mihi cura futuri] 02/12/2011 08:02

this stock is massively undervalued..words fail me

[mihi cura futuri] 02/12/2011 06:33

Gap fill on chart to 25p

[mihi cura futuri] 02/12/2011 06:32

'The Company expects to produce c.200,000 carats of predominately high quality white Type IIa goods, during the financial year to 31 August 2012'

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'Type IIa diamonds are rare and account for probably less than 2 percent of all natural rough diamonds in the world'

Type IIa diamonds are rare and account for probably less than 2 percent of all natural rough diamonds in the world. Only a small number of active diamond mines regularly produce Type IIa diamonds's, which make it a highly economic deposit'

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We are sitting on a 'gold mine' here. The fact the this mine will be producing in 2012 200k carats of White Type IIa diamonds (high value diamonds' means the mine is highly economic, highly profitable.

Mine life of around 55 years

Ramping up to around 300k carats in 2013

it's a bonanza and the market hasn't even woken up to it

[zaksab] 01/12/2011 23:13

no debt???

[mihi cura futuri] 01/12/2011 22:06

Graff Diamonds is believed to be in the process of preparing an initial public offering in Hong Kong, in which it could raise about $1bn. This has led to some speculation that Mr Graff could use the proceeds to snap up Gem as a way of "vertically integrating" the business (Daily Telegraph 1 Dec 2012) about Gem Diamonds Ltd

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I wonder if Laurence Graff is looking at Namakwa which along with GEM is also based in Lesotho?

GEM is capitalised at around £240m with NAD at £27m...we have some way to go based on what we can produce next year

and no debt

[mihi cura futuri] 01/12/2011 21:31

'With financing for the ramp-up of Kao to Phase I commercial production in place from long-term committed shareholder and financier, Jarvirne, the Company expects the Kao to produce c.200,000 carats during the financial year to 31 August 2012. The first sale of diamonds recovered as part of the commissioning phase is expected to be held in the New Year.

Commenting on the court judgement, Richard Collocott, CEO of Namakwa said:

"We were always of the belief that this case was without merit and I am delighted to have received the court's determination this morning. The Lesotho team can now focus on the commissioning and ramp-up of operations at the Kao project, without distraction. Early indications are positive, with the commissioning process well underway and the recovery of a number of high quality diamonds, including a 13.27ct diamond yesterday.

We look forward to the mine being in commercial production in the first quarter of the 2012 calendar year, and the first sale of Kao diamonds in January 2012.'

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200k carats upto end of aug 2012

200k*$1000/carat = $200m!!
200K*$1500/carat = $300m!!!

[mihi cura futuri] 01/12/2011 21:11

30k carats pcm at a rough price for white diamonds/carat of around $1500-2000/carat = $45m pcm!!

that's nearly $540m per annum depending on price rec'd for each carat..say reduce that by 50% for delays etc etc and still you're looking at an income of nearly $270m per annum for a company capitalised at £27.50m!

£175-£200m quid/per annum minus costs

this company is on the verge of a huge turnaround in fortunes

65% holding through storm

[mihi cura futuri] 01/12/2011 18:58

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some excellent stuff above which will make your mouth water with yum yum and so much profit to come

get buying!

[crosswire] 01/12/2011 15:26

Namakwa Diamonds could attract suitors − analyst



By: Mariaan Webb

8th September 2011

JOHANNESBURG (miningweekly.com) − London-listed Namakwa Diamonds, which recently unveiled a strategic review, could be a takeover target, an analyst at RBC Capital Market said this week.

[oregano] 01/12/2011 15:23

Mihi - so long as the volume is high enough to finish off the Pru and Blackrock that's all that counts.

[crosswire] 01/12/2011 15:20

Back in April 2011

Recommended by Growth Company Investor at 44p last November the shares have gained 22.7 per cent, and are currently trading at 54p. With some ambitious production targets for 2011 and plans to develop its abilities in the DRC we think the shares are worth a speculation and are upgrading Namakwa from hold to speculative buy.

[mihi cura futuri] 01/12/2011 14:59

This as dropped from the 60's on bad news and know the company is firmly back on track it surely must be worth plus 50p!

And look at that volume ffs! That's institutional buying

[mihi cura futuri] 01/12/2011 14:32

price nudging upper limit of bollinger band..fingers crossed it can break through

I do reckon II's buying back in now operations are derisked somewhat

[crosswire] 01/12/2011 14:24

Lesotho Litigation Against Namakwa Diamonds Dismissed


Namakwa is pleased to announce that the claim by Batla Minerals SA and, its subsidiary, Toro Diamonds (Pty) Ltd for 50% of the Company's 62.5% equity interest in Storm Mountain Diamonds (Pty) Ltd, the operating company of the Kao kimberlite project in Lesotho, has today been dismissed by the High Court of Lesotho, with costs awarded in favour of Namakwa.

Pursuant to an order of court granted on 8 August 2011, Namakwa has undertaken not to deal or otherwise encumber its 62.5% equity interest in Storm Mountain Diamonds (Pty) Ltd for a period of 14 calendar days to allow the claimants the opportunity for the right of appeal under Lesotho law.

However, the Company remains confident that this undertaking will be lifted following today's judgement and a further update will be provided to the market in due course.

With financing for the ramp-up of Kao to Phase I commercial production in place from long-term committed shareholder and financier, Jarvirne, the Company expects the Kao to produce c.200,000 carats during the financial year to 31 August 2012. The first sale of diamonds recovered as part of the commissioning phase is expected to be held in the New Year.

Commenting on the court judgement, Richard Collocott, CEO of Namakwa said: "We were always of the belief that this case was without merit and I am delighted to have received the court's determination this morning. The Lesotho team can now focus on t he commissioning and ramp-up of operations at the Kao project, without distraction. Early indications are positive, with the commissioning process well underway and the recovery of a number of high quality diamonds, including a 13.27ct diamond yesterday. We look forward to the mine being in commercial production in the first quarter of the 2012 calendar year, and the first sale of Kao diamonds in January 2012."

[mihi cura futuri] 01/12/2011 14:17

250k at full offer..someone can see super value here

[crosswire] 01/12/2011 14:14

Namakwa Diamonds: World class Kao kimberlite project de-risked and ramping up to commercial production

Tuesday , 29 Nov 2011 Namakwa Diamonds

Following the completion last week of the Company's refinancing, Namakwa's 62.5% owned Kao kimberlite diamond project in Lesotho is today in the process of commissioning and ramping-up towards sustainable commercial production levels, expected to be achieved in the first quarter of calendar 2012.

With financing for Kao's Phase I production in place from long-term committed shareholder and financier Jarvirne, the Company expects to produce c.200,000 carats of predominately high quality white Type IIa goods, during the financial year to 31 August 2012. The first sale of diamonds from the ramp-up phase of production is expected to be held in the New Year.

As at 31 August 2011, Kao had an indicated and inferred resource base, independently verified by Venmyn, totalling approximately 12.66m carats.

Commenting, Eduard Prutnik, Jarvirne's founder, said: "I was exceptionally pleased that Namakwa shareholders saw, as I have, the incredible potential of the Kao Project and approved the refinancing provided by Jarvirne. I am also very happy with the way in which the management team performed during a difficult period and I believe that they are taking the Company in the right direction. With commisioning underway and production building to full commercial levels, I have no doubt that Kao will prove to be a long life asset that we can be proud of and that will deliver substantial value to all shareholders."

Richard Collocott, CEO of Namakwa, added: "Now that Namakwa is financially de-risked through the strengthening of our balance sheet and the continued availability of the USD 40 million facility, thanks to Mr. Prutnik's financing of the Company, we can resume our focus on operational issues. We are making good progress in implementing our 2012 financial year strategy to reduce costs throughout the Company, to increase the economic value at our North West Province operations in South Africa and to develop the Kao Project into a prize asset with long term commercial production potential."

The Kao Project

In late December 2009, the Lesotho operational company and Namakwa's subsidiary, Storm Mountain Diamonds, took control of the Kao Project. Storm Mountain Diamonds is an innovative joint venture operating company for the Kao Project held between Namakwa (62.5%), the Government of Lesotho (25%) and local Basotho citizens through a public vehicle, Kimberlite Investments Lesotho Limited (12.5%). The Government of Lesotho's equity interest is fixed and cannot be diluted by further equity issuances.

The Kao kimberlite pipe is the largest diamond-bearing pipe in Lesotho and the fourth largest in South Africa and Lesotho (19.8ha). Kao represents Namakwa's first hard-rock, large-scale mining operation.

The Government of Lesotho granted Storm Mountain Diamonds access to the project area in February 2010, and an experienced Lesotho hard-rock mining team led by Namakwa's Chief Technical Officer and Chief Executive Officer of Storm Mountain Diamonds, Keith Whitelock and General Manager, Jan Venter, began establishing an operational site. Today, there are more than 500 people employed on the project area, with the majority comprising Basotho citizens.

The development of the mine will take place in two phases to provide an open pit life of mine, estimated by Namakwa, to be in excess of 25 years.

Phase 1 will constitute the mining and processing of K6 hard-rock and hard and weathered K-Other kimberlites over an anticipated three to five year period. This process will establish revenues for the various K-Other facies, which comprise 95% of the pipe and will provide 9Mt of basalt by way of waste stripping to complete the slimes dam wall, as well as exposing high value K6 kimberlite for mining. Revenue data obtained from this process will be incorporated into a feasibility study on the viability of increasing the rate of mining and processing, two-fold, with greater economies of scale in terms of unit costs.

During Phase 1, Storm Mountain Diamonds expects to mine and process: (i) 2.5Mt of the higher grade K6 facie; and (ii) 11.9Mt of hard and soft kimberlites from the K-Other facies. However, the Phase 1 operation allows for the doubling-up of operations, in a second phase, to take advantage of the best economic rate in which to mine the whole of the kimberlite pipe to depth, should this be warranted by the results of a bankable feasibility study and the then current economic conditions.

The Company has already commenced a pre-scoping analysis for a definitive feasibility study on the doubling up of production capability at the Kao Project. This study is expected to detail, inter alia, the capital expenditure requirements of the Phase 2 mine and Namakwa expects the study to be completed in 2013.

Subject to diamond prices and the economic climate, the in-built flexibility of the Phase 1 mine plan allows for Phase 2 to be developed at an earlier stage, or for Phase 1 to continue beyond five years operating at an anticipated 300,000 carats per year from the processing of 3.6Mt of kimberlite ore each year.
About Jarvirne

Jarvirne is the investment vehicle from the group of companies of Mr. Eduard Prutnik, an industrialist from the Ukraine. Mr. Prutnik holds substantial business interests in agriculture, property, ore processing, mining, leisure and other industries. He is also the founder of the United World Foundation, an international charitable institution, aimed at raising the awareness of Ukrainian citizens of their national identity, importance to their community and the whole world, and securing their rights and opportunities in the global society. Jarvirne has been a shareholder in Namakwa Diamonds for over a year, and has been a provider of loan financing to the Company in the past, as well as a trading partner of the Company's Trading & Beneficiation Division.
About Namakwa Diamonds Limited

Namakwa is a diamond resource group, which seeks to extract maximum value from the marketing, distribution and sale of Group mined and contracted production through a Trading & Beneficiation platform with access to the international wholesale markets.

The Group's Mining Division is focused on the Kao Project in Lesotho, the 4th largest individual kimberlite pipe in South Africa and Lesotho, anticipated to come into commercial production in the first quarter of the calendar year in 2012, and the only one mining at or near surface. Operated by Storm Mountain Diamonds and its leading hard-rock mining team, with a proven track record in the construction and development of Lesotho's leading kimberlite pipes, the Kao kimberlite project presents a 186Mt resource of c.13m carats (c.4m indicated and c.9m inferred), of which Namakwa holds a 62.5% interest.

The Group also maintains alluvial mining operations in the North West Province of South Africa and a portfolio of exploration and development projects in the Northern Cape Province of South Africa (alluvial) and offshore concessions in Namibia (marine), with a combined resource base of c.7m carats (indicated and inferred).

[oregano] 01/12/2011 12:13

I agree on some points Andy. Jaravine are playing trebble or quits. they were owed $19m, but committed another $40m to let Kao get to production.

their 30% stake is not something you can drip into the market.

Presumably if Kao was a bag of spanners they would have just written off the $19m.

[andy] 01/12/2011 12:04

o,

They creditor probably had no choice other than to convert the debt to equity, because if they Namakwa can't pay, what can they do?

At least this way they can try and drip it out into the market, and may even achieve 50% or more recovery, which would be good for a distressed situation.

Options are not the same thing as putting real money into the stock!

and people often get excited about target prices, which are sometimes used to mislead, IMHO.

NML directors taking options at 50p when the share price was 5p and falling fast is the best example I can recall!

[topnotch] 01/12/2011 11:51

JR50 >>Good Luck!!!

[bobs good eye] 01/12/2011 09:48

Interesting to note also that instis are nearly cleared. Could be a good recovery stock. Will knuckle down to some research this evening.

[oregano] 01/12/2011 09:27

indeed. on all fronts.

[wow400] 30/11/2011 16:26

Good news!