Pangea Diamond Share Discussion Threads

[ihavenoclue] 06/4/2009 13:09

leg up a weak one .. can buy at 2.59p ... next step seems to be down

[andrbea] 03/4/2009 15:07

some big buys at lunchtime
eg 500k and 372k (this one at a premium to the then offer)

[andrbea] 03/4/2009 13:15

This from last trading update:

I like the (potential) size (and quality) of the Bakerville project (they've only looked, so far, at 10% of the area under permit):

In the Company's latest resource statement, dated 31 March 2008, an Inferred Resource of 2.17 million m3 was declared at an average recovered grade of 3.22 ct/100m3. As a result of additional bulk sampling work since the last resource statement, a recent independent review has updated the resource base for the Patsema area of the project to December 2008, to an Inferred Resource of 3.59 million m3 at an average grade of 3.42 ct/100m3.

Management expects to be able to continue to increase the resource base given that the current resource relates to only 10% of the total area under permit. In addition, applications for exploration permits over a further two adjacent farms have recently been granted while two more applications are presently in the assessment process.

A feasibility study to determine the most efficient and cost effective methodology to fully develop the Bakerville project to commercial scale has been ongoing for some time with results expected by the end of June 2009. Information from the Pilot Mining phase, including average per carat sales values achieved on more representative volumes will be used in the feasibility study. Subject to the results of this study, the successful conversion of existing permits to a Mining Right and the availability of funding, the Company anticipates a decision to progress to a full scale commercial operation being made in the second half of 2009.

To expand the project to full commercial scale it is necessary to purchase the Zamenkomst farm on which the operation is currently situated. A revised agreement was negotiated during December 2008 to effect this purchase of the farm for a consideration of ZAR5.22 million (approximately US$0.52 million) and in terms of this agreement some ZAR2.0 million (approximately US$0.2 million) or 38% of this has already been paid with the balance to be paid by mid-2009.

Whilst the feasibility study is still in progress, current scoping studies suggest that a scale of operations producing around 1,350 carats per month at a cost of around US$4.00 per cubic metre, are the likely targets for a commercial scale operation at Bakerville

[andrbea] 03/4/2009 13:01

This from March 2

Note issued today from Ambrian.



Pangea DiamondFields* has announced that, following payment for 71.2m shares of the outstanding unpaid 288.4m shares, all conditions have now been met for the Open Offer announced on 15 December 2008. This takes funds raised to US$12m. The company will continue to seek payment for the residual 137m unpaid shares, although it notes that there is no guarantee funds will be forthcoming.



Comment
Closure of this fund raising should now allow Pangea to get back to the business of diamond development and mining. The cash is critical as the company's business plan is reliant on the ongoing sale of diamonds as it matures projects from bulk sampling to pilot mining and on to commercial mining. Given the current state of the diamond market, we expect the prices the company achieves as it expands will be around half of what would have been expected in 2008.

The other effect of the depressed diamond market will be that Pangea will focus only on operations that are cash-generative. Specifically, Angola should remain cash positive through the year, even at prices 50% less than last year for diamonds. The project should benefit from new equipment to be delivered this month, as well as the opportunity to purchase other equipment at deeply discounted prices as other miners pull out of the country. Bakerville, in South Africa, may also be able to operate profitably at pilot scale given the low costs in South Africa (ie, much easier logistics).

Operations in the Congo already have good resources to initiate mining on, but high staff and fuel costs will likely lead the company to wait until diamond prices recover before resuming mining.



Comment
Despite the depressed state of the diamond market, the strengthened balance sheet post-raise - as well as the potential for small but cash-generative mining - implies that Pangea is quite likely to survive the downturn, unlike many of its peers. For that reason, and given that management has taken a significant portion of the raise so certainly has 'skin in the game', we retain our SPECULATIVE BUY rating.

[pelleeds1980] 19/2/2009 09:31

Looks like its pausing for a little rest!

[linslader] 19/2/2009 09:22

and that is what ayesha4 ?

[ayesha4] 19/2/2009 09:20

some news is about to break here

[pelleeds1980] 19/2/2009 09:05

I bloody well hope so mate! Nice chart so far...did try a dummy sell and it wanted to do a negotiated trade not sure how many mm's sit on this etc havent got level 2

[pre] 19/2/2009 09:04

Another push up.....was trading at +10p a few months ago and +30p just before sept last year...pplenty of upside potential here imo, dyor etc:-)

[pre] 19/2/2009 08:54

nice one pelleeds1980.....could we see what happened on 'EVE' here today?

[pelleeds1980] 19/2/2009 08:53

Pre I am in here at 1.2 so very happy.. not followed too closely recently whats causing this hows the volume looking?

[pre] 19/2/2009 08:50

get ready...this could fly today....

[pre] 18/2/2009 09:23

buying activity building up......next leg up coming imo...

[pre] 16/2/2009 19:14

Bodes well for tomorrow...upward trend forming:-))

[pre] 16/2/2009 10:06

wonder if that's the signal that any overhang has cleared?

[pre] 16/2/2009 10:05

amazing...this was trading at around 50p just over 8 months ago......

[pre] 16/2/2009 09:14

another tick up....very bullish signs...looks like any buying pressure will force this a lot higher...someone after stock here?

[pre] 16/2/2009 08:43

There's the move up....now let's see where we go from here.....

[pre] 13/2/2009 18:40

nice breakout today...expect this to fly on monday......way too cheap at current levels imo,dyor etc:-)

[roommove] 06/2/2009 10:35

Am I correct that the mrk cap here is approx £15m not the £1m advfn show?

[s_e] 04/2/2009 17:00

lol ..you spotted the mistake..

[imabastard] 01/2/2009 19:16

s_e .... 'cash price of around $1.1 at todays prices'

Did you mean $1.1 million ?

[s_e] 01/2/2009 12:27

Prospects here look quite interesting,diamonds already recovered total over 6.000 carats,with cash price of around $1.1 at todays prices.
The company say there is no need to rush to sell ,they can wait untill prices pick up,which is expected, due to increase demand and over supply.
Pangea Diamonds expect production to rise further going foward into Q2 2009,I think i will grab some at these prices.....