Namakwa Diamonds Share Discussion Threads

[andy] 05/7/2012 16:20

Appleover,

Good question,and I'm afraid the answer is I think you will have to sell them, and buy back into your trading account.

Unless NAD are quoted somewhere else, AIM listed stocks are not permitted in an ISA.

[applelover] 05/7/2012 15:50

When the firm moves to the AIM will the NAD shares in my ISA still be tax free?

If not will I have to sell the shares in my ISA?

[mr keeny] 03/7/2012 21:13

onceabroker,

ABtwo is entirely correct and your reasoning taken from the Feb 2012 trading update involving the crushers does not excuse the fact that the K6 grade has dropped from 17.75 to 11.57cpht regardless of the tonnage processed.

I am sure you understand what CPHT means and you can see that values for both the K6 (11.57cpht) and K-other (7.37cpht) ore are given. These separate values have have no relation to the crusher issues and mixture rates you have highlighted in reasoning.

I have no "mission" here which you have unfairly accused ABtwo of and I do not hold NAD shares but I thought it polite and fair to correct the misleading incorrect reason you have put forward to cover up the significant decrease of the K6 cpht.

Anyone who knows enough about the diamond mining industry would know this and I will leave others to form their own opinions.

[mrs keeny] 03/7/2012 16:17

you lot leave my husband alone. he may be no good in bed but he makes a lovely tea.

[the_merlion] 03/7/2012 16:14

abtwo and mr keeny shouldn't you two "ahem", call the company and let them know your findings, surely they cannot be cash generating as declared in the rns today, are they reporting fraudulently? maybe a good idea to call all them brokers and journalists who have poured over the company reports and not even picked out this issue, quick before they close

pathetic

Merlion

[earnestwipplathwaiteiii] 03/7/2012 14:58

Mr Keeny

if i remember right, you are on onceabroker's ignore list? but i don't think i am, so i can ask the question on your behalf if you want.

onceabroker

Mr Keeny (aka) baffions (aka) merlion (aka) 123asd etc, wants to have a conversation with you, so can you take him / her off ignore he/she said.

its a funny old game this.

[mr keeny] 03/7/2012 13:28

onceabroker,

ABtwo is entirely correct and you are wrong. The K6 grade has dropped from 17.75 to 11.57cpht regardless of the tonnage processed.

[naked trader] 03/7/2012 13:24

Working towards breakeven should give you a clue!

[jimbobaroony] 03/7/2012 12:40

Guys,

Have I interpretted this correctly:

"Lesotho: Q3'FY2012 production 42,348 carats, from 397,560 tonnes processed, an average cost of US$400/ct. Sales during the period amounted to 22,865 carats at an average price of US$350/ct."

- Does this mean that they are losing $50 per carat at the moment or am I looking at this too simplistically?

[naked trader] 03/7/2012 10:48

John,

A positive view, at last I find out how much the 'Pink' was worth! Did I read that another large rock has been found? I also read some negatives in to the statement but on the whole there could be cause for optimisim. I would welcome any opposing views for a balance thread.

regards

NT (not TNT)

[onceabroker] 03/7/2012 10:34

ABtwo

Is that a serious observation? when you are comparing the cpht against the 54,817 tonnes mined in Q1 to the Q3 tonnage of 310,671.

You are of course fully aware of the issues of the secondary crusher, but i would not imagine facts will get in the way of your 'mission'.




The ramp-up to Phase 1 commercial production has demonstrated that average diamond grades, when extrapolated from production results, remain in-line with those achieved during the metallurgical test work conducted in 2010 / 2011 (K6 at 18cpht and K-Other at 6.24cpht). Furthermore, average stone sizes are in-line with forecasts made for the 500tph processing plant in its current metallurgical format and the prices achieved for such diamonds are in-line with expectation for such sieve sizes. Separately, ongoing ore body delineation has identified additional kimberlite facies, which make-up the Kao Main Pipe Complex (KMPC) and, as a result, the geological model and contained resource have been refined to provide a 189Mt kimberlte resource of c.12.8m carats (c.4m indicated and c.8.8m inferred), with an additional 1.7m carats at a deposit level of confidence.



To-date, the mix of higher grade K6 ore to lower grade K-Other ore processed has only been 1:5 due to failings with the secondary crushing capacity, which has limited (and at times prevented) the crushing of high grade K6 ore from the original plan of a 1:3 ratio between K6 and K-Other. To resolve this problem, the Company plans to install two new cone crushers: one to replace the two existing secondary crushers; and one to increase capacity within the tertiary crushing circuit, by working in parallel with the current existing crusher. These replacement crushers are expected to cost c.US$2m in total and will be delivered and installed during an 8 - 12 week timeframe. Thereafter, these crushers should allow for the optimal and reliable processing of hardrock kimberlite ores.

As a result of the issues encountered with the secondary crushing capacity during the ramp-up to Phase 1 commercial production and the restricted ability to process high grade K6 hardrock ore, together with the additional capital expenditure requirements for the two new crushing units,

[abtwo] 03/7/2012 10:12

John, but the K6 grade dropped from 17.75 to 11.57cpht a drop of ~35%.

[onceabroker] 03/7/2012 06:55

You wait for one RNS and a train load arrive!! and what a RNS to wake up to, a new era of management to take us the next step and a confirmation that we have entered at the bottom rung of a new diamond company.

Some of the highlights.

June 2012 Antwerp Tender: Aggregate sales revenue of US$11.29m

Did anyone believe that we would get over $4.5m for the pink? along with diamond prices which are currently depressed, we have achieved a full sale of Kao goods and at a average of $296 ct.

The second new crusher was installed into the tertiary crushing circuit in June 2012 and the repaired scrubber will now be reinstalled into the processing sequence in mid-July 2012

The repaired scrubber was due to be installed in October 12, they now have the water to uplift the production rate, and have taken the decision to bring it all on-line earlier.

Make-up process water remains sufficient for current operations and water levels in the freshwater dam are currently higher than forecasted. The construction of the water pipeline that will provide an additional source of process water for operations remains on schedule for commissioning in mid-July 2012. As such, the local management team is confident that a production target of 150Kcts for FY2012 (as revised in late May 2012) remains achievable.

This will now confirm FY2012 targets for 150k ct, i see that SA is expected to EXCEED its production taget for 2012!!!

As at 25 June 2012, YTD production was 18.5Kcts and management anticipated exceeding their FY2012 production target of 20Kcts.

Corporate Costs:Continue to be significantly reduced as Group restructuring nears completion. Q3'FY2012 costs were US$2.2m, providing for an aggregate total YTD of US$6.3m against an FY2012 target of US$9m (FY2011: US$15.9m actual).

This is a huge saving of corporate costs, we estimated to have group costs of $9m.........we are actually saving another $2.7m off this budget.

The decision taken to restructure operations in September 2011 is now showing significant positive results, with the mining area operating on a cash-flow positive basis

SA was losing money since it began operations, and to turn cash flow positive is a huge turnaround.

The costs of remaining capital projects will be met from Group resources and operations are currently cash-flow positive.

The move to AIM will not effect us, it will actually save costs of having a listing on premium. Jarvirne now have a huge portion of the new shares, but this will mean they do not drop these shares onto the market whenever a profitable MC presents itself.


Revised Board Structure

Following these changes, the Board of Namakwa Diamonds will be constituted as follows: Melissa Sturgess (Non-executive Chairman); Theo Botoulas (Chief Executive Officer); Martiens Mulder (Independent Non-executive Director); Robert Reid (Independent Non-executive Director); Gerard Holden (Non-executive Director) and; Vladimir Kravets (Non-executive Director).

Commenting, Melissa Sturgess, Non-executive Chairman of Namakwa Diamonds said: "This is an important period in the development of Namakwa Diamonds, as a mining company and we are immensely grateful for the work of both Edward and Richard during the Company's evolution. We wish them well for the future. We now welcome Theo Botoulas to the Company and look forward to working with him as CEO and Vladimir Kravets, as Jarvirne's new non-executive director, "to derive maximum shareholder value from the Group's operations in Lesotho and South Africa."

A step up in management IMHO, Richard did a fine job in streamlining the company, but now we have achieved that goal, we needed management to now take us into this new era of growth, and that is what we have here. The last sentence says it all.

best regards

John

[onceabroker] 02/7/2012 09:37

My apology, it was 150k ct down from 170k ct. Going by my calculations, its going to be a tight call to get to the 150k IMHO. But maybe they believe that once the water pipeline is working, they will up the plant to 300 tph, and increase production for the final 6 weeks or so after, (year end is 31/08/12), and we only have this IMS before year end results.

best regards

John

[onceabroker] 02/7/2012 08:34

Good morning.

Big RNS in the morning in my opinion, and this could be a crucial start to our new era. Looking at some of the possible highlights (and lowlights)

Production update, we are currently producing 635 ct per day at Kao which equates to approx 19,000 ct per month on a 30 day equation. On 25/05/12 we had produced 68,240 ct, so by 25/06/12 we should have produced 87,000 ct, which if you then have the final 2 months before year end (31/08/2012), we would hit our target of 120k ct. This is all dependant upon water pipeline, which was a week ago reported to be on schedule for mid July (2 weeks away only). So these numbers and updates will be important tomorrow.

The results of the June Tender for Kao will be positive and in-line with previous months excellent results IMHO, but the 'pink diamond' may have broken a record, and we may find out tomorrow that we have just made a lot of money on this one special tender.

There should be acknowledgement of Batla placing their appeal paperwork/argument (due 30/06/12) and our counter argument.

And there should be the confirmation of the results of the open offer, in that we will find out the percentage of Jarvirne holding which will dictate to us the direction of our listing on AIM / Premium or not. There will also be the confirmation of full re-payments of all debt, and confirmation of cash in the bank.

And lastly we should have a update on the 'KILL' donation of $6.25m?

It is quite possible, if the IMS is all positive, we could actually leave this low MC behind us from tomorrow, with possible broker notes and upgrades following the release of any positive news. We await with abated breath!!

best regards

John


.............................................................................................................................



This was received last week



Mr. xxxxxxxx

Our Interim Management Statement will be out on Tuesday next week, so we will update the market in the ordinary course.

Thanks

Ryan

Ryan Barrow

Namakwa Diamonds Limited

T: [phone]

E: [e-mail]

[earnestwipplethwaiteiii] 24/6/2012 01:12

baffinsand123asdaregay - I am not as au fait with "affairs" at NAD as some posters, but I am flexible enough to welcome "correction" where appropriate (as you appear to be too, judging from your user name ;-)). My own view, for the small amount it is worth, is that, in common with almost all AIM stocks in these risk-averse times, NAD will only move up on good news, and perhaps find it impossible to sustain any rise under present circumstances. When is the company due to update the market on any price-sensitive news?

best regards,

Wipplethwaite III

[mrs keeny] 23/6/2012 14:47

I'm still in this share, and I am still ramping this share and de-ramping FDI, how much fun am I having. Where's Skint365, I am sure I won the bet we had.

Merlion

[baffinsand123asdaregay] 23/6/2012 13:14

earnestwipplethwaiteIII, love the name, when are you going to post anything to do with nad? i see the open offer expires soon, do you think nad price will move upwards after.

baffins

[onceabroker] 21/6/2012 13:44

I see the usual suspects are at large again, when will they ever learn.

best regards

John