Share Name Share Symbol Market Type Share ISIN Share Description
Paragon Diamnd LSE:PRG London Ordinary Share GG00B6684H44 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 3.90 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
0.00 0.00 0.00 0.00 0.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining -13.35 -3.29 11
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 3.90 GBX

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superg1: CS I was hunting for something and dropped on this post which I'd forgotten about. Have you seen it/sent it off, it looks very interesting on the comments supposedly made by PM. Imo not very clever things to say and look at the spread bet comments too. I'll mention it again as I did a while back. While PIs were piling in buying many millions of shares who was selling as the share price never took off? swooped - 05 Jun 2015 - 14:03:21 - 5774 of 7335 Paragon Diamonds - From development to full production - PRG Ok Guys, as you all asked here is an email from Philip Manduca received this morning, my suggestion is forget about the temporary flucuations and take full advantage, please note I asked all the questions recently raised here (includig the spreadbetting) I am more than happy with the response and remain fully invested: Email from Philip Manduca: Dear XXXX The share price action has been disappointing since the release of very positive news over the last four months, and in studies of its movement, the following analysis arises: 1. The current investor base remains too narrow and too weighted with private investors within the free float. They appear to possess either too low an investment quantum to invest and thus positively impact the share price on a sustained basis and/or too short a timeframe to retain a position, requiring constant positive news flow on which to feed rather than focusing on the successful construction of medium term enterprise value in this company, which has been occurring. Until the market capitalisation rises above a minimum of £30 mln, and more preferably above £50 mln, we may find it more difficult to attract the necessary amount of initial institutional buying that tends to have a longer term timeframe in their investment. That level of market capitalisation translates to a share price of about 12p. Itâ€T82;s not a difficult rise from the 6p level, in my opinion given our projected net asset value with Mothae will be in excess of $1bln. 2. The share price does not appear to want to move higher on either the Mothae acquisition nor the funding MOU until either the contracts with Lucara (and subject to government approval) have been concluded and/or until the subsequent funding is released. We have now received the initial draft contracts this week from Lucara. Once they have been concluded, and government approval has been granted, (for which I do not expect a material delay) then we can move straight to getting the pre-designed plant to site and commencing actual production. Not long now, then, and the 3rd quarter remains the plan. 3. The prevailing low daily volumes suggest that there is not a major seller placing stock in the marketplace. This thesis would be consistent with assurances I have received in the second quarter from the larger existing shareholders that they were not selling. But the Board are considering taking immediate action to acquire shares from any existing major shareholder prior to the completion of the Mothae acquisition and associated release of funding, to ensure that we have a fair reflection of share valuation in the market in the interim. 4. AIM and its brokers are struggling to operate optimally, and it is very disappointing to most companies listed there. I do feel that the brokers are culpable in accentuating the short termism that pervades financial markets, as they are so wholly focused on “todayâ€� and short term revenue targets and of course potential bonuses. 5. Investors in the small cap area surely are buying great potential at a deep value point. It follows then that it can take time for the value to be identified by larger investors, as corporate developments occur as anticipated. in the case of Paragon, one is not just investing in a company nor a sector. One Is also diversifying into a portable currency producer with a product that provides strong fiscal and monetary system hedge characteristics, and a Board of Directors, who are fellow shareholders, that will be precious with shareholder capital, contrasting markedly, I feel, with large corporations’ “loose and fastâ€� policies on expenses, remuneration and dressage. 6. Much fuss is being made of spread bets. Titanium Capital deployed some of its shares into a spreads bet structure to utilise the cash in the interim elsewhere and to control its overall shareholding levels. It is a temporary mechanism has no other implications. In the meantime, there have been several developments occurring both directly and indirectly affecting Paragon. We have been receiving several exploratory approaches for additional funding. It means that industry specialists appear to agree with us that we have two great assets which amount to more in combination than apart, in terms of the potential to aggregate our scale of distribution and improve the companyâ€;™s revenue stream therefrom. In the field of technology, both X-Ray technology at the plant site (to which we committed early in the design process), and the newish Sarin technology, which accurately predicts how to cut a rough diamond optimally, and precisely what output one can achieve from a rough stone, have improved the quality of the recovery and subsequent financial return for diamond producers from their output quite significantly. Once production commences in the 3rd quarter, I expect the share price to increase significantly shortly thereafter (which is consistent with what I have written to you before) as annual net revenues 24 months after production commences are forecast to reach $80mln at current diamond prices. Furthermore, I would speculate that the stronger share price will gain an additional “bidâ€5533; premium, as other producers look to replace their diminishing open pit resources with acquisitions, as the industry remains exposed to having to mine (more expensively) deeper underground in the absence of discovering any new major kimberlite resources, a lack of discovery that has been, for almost 25 years, creating a predicted shortage of supply relative to demand of the larger stones within the next two or three years. Paragon does not have this problem, and has two sizeable assets with, we believe, strong geological credentials on an open pit basis to produce quantities of larger stones. I recognise that the market is always hungry for constant news on developments, but a process has to be formally followed here with both a Canadian listed company that has an intense focus on accuracy and proper practice (which bodes well for the integrity of the science at Mothae), and of course with the Government of Lesotho which must approve the acquisition. Yet developments at a macro level continue to enhance the potential for diamonds both as an investment and as a currency store of value, as both the geopolitical and monetary policy picture worsens, and the global banks continue to be forced to support governments in exacerbating the bearish environment for cash and both onshore and increasingly offshore deposits. Investors should be focused on these developments more than they are. In addition, gold continues to deteriorate as an investable and low visibility asset that can be utilised outside the banking system (given its high density to value), which means there is likely to be accelerating asset re-allocation from gold holders into other more mobile, less dense stores of wealth that also act a currency. In this respect, investment grade diamonds are top of my chart, and in my opinion, Paragon represents the best corporate proxy for investors to be exposed to diamonds, given our tight controls on cost expenditures and self-remuneration, which will be through equity participation alongside shareholders and not through constant large annual bonuses unrelated to performance. Paragon is not losing time in the interim. We have continued working on the design to enhance the existing plant at Mothae, finesse the existing plant design at Lemphane, ensure that we will get prompt implementation of the plant assembly and commissioning at both sites, complete all necessary drilling work, commencing the plant design for the full production of Mothae at 2MT within two years, ensure that all senior level recruitment is in place in time to expedite prompt production at both sites etc. The board are working flat out preparing to accelerate production and the related revenue stream. I still expect a double digit share price by year end. I hope this helps to answer your letter comprehensively. Kind regards Philip Falzon Sant Manduca Executive Chairman Paragon Diamonds Ltd 103 Mount Street London W1K 2TJ
ged5: Just a reminder swooped 7 Nov'14 - 11:24 - 4097 of 5503 7 0 Well here we go chaps this cannot look much more positive, an email I received just now from Philip Manduca with his permission to share as I wish. I'll be buying more. Dear Mr. XXXXXX Thank you for your correspondence below and kind words. I think it is important that there should be an open dialogue between the Board of Directors and shareholders, although we cannot guarantee that we will be able to answer each and every letter. I recognise that this is a sensitive time for the company and its shareholders, who have remained patient to date. I became the Chairman and a prospective significant shareholder only a few weeks ago, but we have already made substantial progress in a variety of critical areas including the mining strategy, funding discussions, the long term business plan and the shareholder re-structuring. I cannot go into detail, for obvious reasons, in this correspondence, but I can assure you that there will be a series of news announcements over the next three or four weeks commencing next week which will clarify what your Board has been achieving. I have agreed to purchase a significant equity stake in the company, as you know. Indeed, my financial commitment to the company has increased since I joined, alongside my strengthened conviction of the company's intrinsic value. This will be evidenced shortly. I am focused on the share price as you are, but I feel that short term movements are more a function of liquidity and macro factors. Once the market becomes aware of the progress Paragon has made and is making, I would like to believe that the share price will reflect my increasing confidence in the company's short and long term prospects. I am more and more confident in Paragon's future success and I am devoting my full time focus on delivering it. Kind regards Philip Falzon Sant Manduca Sorry for the long email but it is pertinent as it includes the latest email from our Chairman, Philip Manduca. Before that I thought it time to place my views clearly on the table, I have as you will know by now been talking to Philip Manduca over the past weeks and he has been kind enough to respond frankly and openly, (obviously within the regulatory rules) to my questions, concerns and opinions. I thought now would be a good time to be frank with all concerned and for openness, I declare as I am sure you are all aware that I am a shareholder of Paragon Diamonds. First, I would like to thank Philip for allowing me to use his emails as I see fit and to confirm to this board why I have been so open in passing on his comments, when by all accounts I could have kept them to myself and topped up considerably at lower prices (which I did but at the same time as posting his emails). I have made my opinions clear to Philip which has included my general displeasure at AIM companies across the board from the lax FSA regulatory framework, to AIM companies propensity to dilute the most loyal of shareholders with equity raises, often finding that the early adopters that should be the most rewarded are the ones penalised, whilst the late comers gain all the rewards by 'getting in' after the dilution effects have occurred. I also made it clear how irksome it can be to see directors of these companies pull large salaries, bonus's and free options without having 'skin in the game'. Below is an extremely interesting and pertinent email I have received from Philip. Of most interest is that I received the following email BEFORE I made my concerns open, therefore the below email has given me great comfort as it highlights the fact that he shares what are mine and I assume many other shareholders concern before making an investment. Finally, you might ask why I take the effort to post these emails, well it's simple, I obviously want to do well financially however, I want Paragon to do well financially and I hope that you also do well financially, I believe Paragon has far greater capacity than most think and is in my opinion seriously undervalued, this is evidenced by the fact (recreated from my past email) that; phase 1 is expected to clear in excess $9 million pa on only 1MT tons of ore based on the targeting of only 20,000 carats, with an estimated minimum value of US$930 per carat. This is imo a conservative estimate considering we just achieved in excess of $2500 per caret, additionally, stage two targets 3MT. By this time we should additionally have the full supply chain in place to take profit from cutting, polishing and right down to the retail customer, all these valuations don't take into account that at 1MT we expect to find some of the very large stones, any of which at this MKT cap could double the company valuation overnight. I also believe since Philip has arrived we are evolving to be a very different AIM company, with different values and if people can understand the potential here then not only can Lemphane become a serious and valuable mine, but with a much higher share price, in time, (probably after phase 1) then the ability to raise finance to advance our other, often overlooked assets, can only help move Paragon from a smaller miner to a major company taking profit from all aspects of the supply chain. Therefore please see the below email from Philip Manduca, other than my personal details, nothing is omitted from it publication. ------------------------------------------------------------------- PHILIP MANDUCA EMAIL Dear xxxxx I wanted to write to you in more detail as a response to your kind letter below, as soon as I had a free moment. Like many if not all shareholders, I am positively anticipating the next few weeks and months as we move towards our targeted date for the commencement of the next stage of the mining strategy. I will continue to keep all shareholders informed of these developments. As I have stated in several public comments, it may have been easier to raise necessary funding using a large equity issuance, and at a discount to the prevailing share price, thereby generating significant dilution to those shareholders who have taken the greatest risks by being early stage investors. That doesn't seem the right way to run a good business to me, if management is truly focused (as it should be) on generating shareholder returns over the long term allied to a fully valued share price. Those that put up risk capital should gain the greatest rewards. It's one of the key distinctions between shareholders and employees. Too often, over the last twenty years, and especially in financial services, it is employees, who have not put up any of their own capital and been paid to do their job well, who seem to be making the most money through high levels of salary and bonuses from the company's business activity, sometimes even when the company itself is losing money. I think that this is wholly wrong. There may, and indeed probably will be, some equity dilution along the way as we grow this company to reach its potential and we seize the opportunities now opening up in the wider diamond industry. But it will never be my first choice to dilute. It's why we have been so focused on prioritising debt rather than equity financing in the last few months for the next stage of development. Your Board of Directors must establish: 1. A corporate management track record of strong and profitable income growth 2. A record of looking after the interests of shareholders first and foremost 3. A distinguished pattern of investing the company's capital successfully in opportunities of deep value in the diamond sector with high probabilities of a successful return on capital 4. An intense focus on adhering to the business plan of becoming a major player in the diamond sector and not being distracted by lateral commodity opportunities or high risk exploration projects Then, we will do very well as a company and be able to raise future capital, if and when we need it, more easily and on better terms. Once again, thank you for your support. Kind regards Philip Falzon Sant Manduca Paragon Diamonds Ltd 103 Mount Street London W1K 2TJ swooped 20 Nov'14 - 20:06 - 4366 of 5508 0 0 Oh yes it does, who wants to see my next post? swooped 20 Nov'14 - 20:16 - 4367 of 5508 8 0 EMAIL FROM PHILIP MANDUCA Now this is what I call bullish but more so it shows what he has planned for Paragon and to be honest everything he has said he was going to do he has done, this is a man who knows how to walk the walk, imo do not sell guys, this is going to rocket over the next few weeks months and although a profit may be sought now, think to the future, what is they say, cut your losers quick and let your winners roll. Dear xxxxx Thank you for your input and kind words of support. In my opinion, the structural changes now occurring in the diamond industry are moving significantly in favour of the producers of the underlying asset, which include Paragon Diamonds Ltd, as distributors downstream are becoming increasingly concerned about their ability to secure long term supply, especially of the higher value stones. Paragon Diamonds intends to ensure that we manage our mining costs and productivity in a disciplined manner once we commence our next production cycle, which is targeted to start in the 1st Q 2015, as you will have read. Once we have produced the mined asset, we want to secure the maximum possible margin as a business from retaining a significant interest in the distribution of diamonds downstream all the way to consumers and investors. I recognise some of the reasons that the mining sector’s shares have been discounted so heavily in recent years. The Board of Paragon are focused on: 1. Trying to ensure that we do what we say we intend to do both on time and on budget. Building a track record of credibility and performance with both shareholders and potential shareholders is a critically important contributor towards achieving a true valuation of the company. 2. Trying to improve management transparency to shareholders, with more regular information updates and a more extensive use of information provision on our website in the future, in which I aim to provide shareholders with my up to date analysis of the diamond industry, its price performance, macroeconomic market trends and an update on my activities as Chairman in 2015. I could not be more excited about the investment Titanium Capital Investments has made and the potential for success at Paragon Diamonds as a company. I am equally as excited about the long term prospects of both diamonds as a mobile store of value that is neither confined by borders, nor subject to banking crises, nor negatively affected by monetary policies that debase the value of paper money, nor easily capable of being confiscated by governments. Diamonds have been a proven store of both value and currency for over 600 years. I believe that’s a strong track record to invest in. Kind regards Philip Falzon Sant Manduca Executive Chairman Paragon Diamonds Ltd 103 Mount Street London W1K 2TJ swooped 13 Nov'14 - 08:23 - 4217 of 5508 2 0 No Slippage. This morning I picked up on the fact that the RNS mentioned H1 2015 and yet all correspondence and interviews have mentioned Q1, knowing how sentiment driven AIM is and that the very first post on the LSE was about slippage, I emailed Philip for clarification on this point, although he was not available he asked that a response be passed to me as below: ---------------- "As you know Philip has broadcast in various public interviews over the last few weeks that commencement of mining is targeted for Q1 2015. The statement from Stephen is not inconsistent with this, and no contradiction should be read into it". ----------------- So there you go lads, no slippage just another way of saying the same thing. And more importantly, if Philip is not showing another side to am AIM Director, I'll eat my hat, never had such an immediate response to a question. Good on Paragon, I'm feeling very happy about how Philip is going to run this ship. swooped 29 Dec'14 - 08:09 - 32 of 347 7 0 Funding discussions coming to a close, NEW email from Philip Manduca Dear XXXXXX Thank you for your kind wishes and please my accept my best wishes too. In answer to your point about the new year, I have previously stated that we will be bringing our funding discussions to a conclusion at the end of 2014. I am adhering to this schedule. We have had discussions with a large and diversified array of entities over the last few months. We have focused on protecting early stage shareholders as much as possible in these discussions. This means that debt funding is preferable to share issuance and dilution, albeit that we have recently completed a buyback of some 63 million shares which can be utilised to prevent a material net dilution in the funding transaction. We have finalised the entities that we wish to pursue funding with, and expect to be concluding our discussions shortly, prior to progressing with the commencement of production immediately thereafter. We have biased our focus as much as possible on securing funding from an entity that can add to the business strategy of vertically integrating Paragon’s mine production as far downstream as possible, in order to capture the maximum possible profit margin for shareholders. There has been a growing realisation in the diamond sector that producers not wholesalers nor retailers own the dominant position in the diamond industry now that supply is set to diminish relative to demand, and we wish to capitalise on this realisation. The Board of Directors of Paragon have agreed not to invest in exploration projects other than in exceptional circumstances. Rather, we are seeking to acquire or joint venture in existing and identified additional resources. The closer they are to Lemphane the better, as logistics and economies of scale improve the financial merits. Paragon Diamonds is seeking to grow its ownership of large diamond production wherever it can without diluting our focus on Lemphane. First things first. Let’s start production at Lemphane promptly and focus on proving the high value of the resource to an institutional metric over the next 12 to 18 months, whilst building towards a high level of profitability for shareholders. I hope that this letter clarifies our commitment as a Board of Directors to be transparent to shareholders and to prioritise their interests, whilst re-affirming our existing timetable. I am more bullish about the potential for large diamond valuations, the resource that Paragon has at Lemphane and the quality of commercial opportunities that Paragon’s business model will produce for the Company than at any time since I first looked at Paragon as an investment. Large diamonds represent a first rate investment opportunity at this time, in my view. Kind regards Philip Falzon Sant Manduca Executive Chairman Paragon Diamonds Ltd 103 Mount Street London W1K 2TJ
mark10101: Club, it is very easy to say you were going to sell up up in hindsight, however you added at a time I would not have, given the delays, as said earlier I was expecting PM to have finance sorted quickly and easily weeks after Mothoe was agreed. You have been critical of the delays (to be honest fairly so given PM pedigree) for as long as I can remember. I have done best in life by being patient and letting luck find me, however AIM does not appear to be a market where patience is rewarded. Interestingly the strength in PRG share price over the last year set it apart from many of my other holdings during this tough time which is what gave me confidence PM would deliver. As a PI in PRG for example we would normally find ourselves at 2p before we had any idea of what was going on. I still believe PM has made the right decision suspending so quickly and I do believe he is battling to get the best result in the end. I showed the Aug 2014 PM interview to my wife in my confession on the state of our portfolio and and PRGs current situation. I still trust PM and I genuingly believe he wanted to deliver as we all were hoping but had not anticipated how savage a down turn the commodities market was going to impact our venture. I am still 100% happy with what PRG is trying to achieve should finance be agreed. Hugo's reluctance to talk to me yesterday and Toms earlier conversatin where he got lots of "no guarantees" thrown in shows the battle is still on. However we are suspended and if we do get through this it will be a lot stronger starting point than had we be left floundering. It shows PM understands markets and share price, countless CEO have retorted that their concern is the running of the business and not the day to day fluctuations of the share price, however the day to day fluctuations on AIM can lead to 90% loss in share value in months on AIM, a position that is very hard to recover from.
mark10101: Exactly, it f this was a typical aim minor we would be at a £10m MCAP but double or triple the shares in the time PM has been in control. So far he has strongly anti diluted which is why I still trust he has the shareholders (which he is a very significant one) best interest in his mind while negotiating. As Superg1 has said it is the perfect storm for raising mining finance. It is quite possible this is the absolute worse time to be doing it and even as early as next year the resource sector could be showing signs of recovery. My hope is oil technically completed it's last visit to $40 WTI yesterday, one analyst I follow said it would do this when we were at $47, I hoped not as a lot of people follow oil to gain confidence and I knew it was a critical time for us here. Many of PRG share price troughs coincide with weaker oil and vice versa, it was a trend I noticed as we got into the holding range we were in over the last year.
club sandwich: Noujay - indeed. If PRG dropped you'd expect OBT to drop, as OBT has exposure to the PRG share price - but the reverse isn't true...
supreme mo: Might be another supply club as OBT were the last one.The lot at 5.2 got taken out so that appears to be a good sign.Thought of the day for you club - could the PRG share price overtake the OBT price in the next week?? (Not trying to reel you in.... much ; - ) )
barnsey: The Company currently has the authority to repurchase up to 33,106,743 ordinary shares of 1p each in the Company Additionally, the Board wants to ensure that the trading of its shares is orderly and that the share price is not overly volatile in the lead up to the completion of the Mothae Acquisition. The Company currently has the authority to repurchase up to 33,106,743 ordinary shares of 1p each in the Company (“Ordinary Shares”). The minimum price (excluding expenses) which the Company may pay for each Ordinary Share is 1p and the maximum price (excluding expenses) which the Company may pay for any Ordinary Share must not exceed 5% of the Company’s average closing price per Ordinary Share on the London Stock Exchange for the five business days prior to the date of purchase. The Company will seek to renew its authorities to repurchase shares at the forthcoming Annual General Meeting. Paragon’s Executive Chairman, Philip Falzon Sant Manduca said, “We wish to ensure that our share price more accurately reflects the growing value of the Company and if necessary the Board can now take action to ensure that the share price remains orderly. This is particularly important whilst we await completion of the Mothae Acquisition and the associated release of the ITGT funding package, so that production can commence later this year. “Paragon’;s share price, in my opinion, should already be in double digits, and I have no doubt that it will be shortly after production commences. I am also aware that poor price action can fuel rumours and negative perceptions amongst existing and prospective investors, and I am determined that this is not going to happen whilst I am involved with Paragon. Shareholders and the market should view this short term debt facility principally as a mechanism for the Board to remove any shareholders if they wish to exit, promote positive sentiment around the share price at this important time and ensure that the Board transition the share price in a strong and proper manner during the coming weeks, thereby enabling a more efficient share price valuation to emerge.”
swooped: Hi Guys, my apologies I received this on Friday but have just not been in a position to post until now. Please find an email from Philip Manduca I received last Friday. Dear XXXX Thank you for your letter today. I will address the questions you raise in the order you have tabulated them. 1. The Board have had authorisation to buy back shares since the last AGM. As I have stated in the latest RNS, the Board are seeking sufficient short term stability in the share price to support completion of the funding transaction both to acquire Mothae and to commence production. We too are aware that there is a specific seller in the market, acting in their own interest and utilising the strong news flow from Paragon and the consequent strong general demand for Paragon shares to generate apparently much needed funds for their own financial purposes. There is little point speculating who the seller is, although it may appear obvious. It is not in the seller’s interest to drive the price lower by forced selling. In any event, over the course of the next few weeks, I expect the seller to disappear, one way or another, and the share price to better reflect the strong news flow that I am anticipating will occur to add to the strong news flow to date. 2. I cannot know whether the Minister will give his approval for us to purchase Mothae next week or whenever thereafter – but it is clearly in the Government’s interest to expedite approval for the Mothae acquisition by Paragon, as it generates significant employment (approximately 150 people) and royalties sooner rather than not at all. I will evidence to him on a hard copy basis very factually and clearly our ability to fund the acquisition and subsequent immediate production of Mothae and Lemphane. With the contracts due to be signed by Lucara now (and it is us who are waiting for them), there should be no delay in receiving the funding. As I have detailed before, we have been and are receiving additional interest from other investment parties to provide funding and to partner with Paragon, one or two of which may be on even better terms that the strong terms we negotiated with ITGT, that led to the MOU between them and us. In an ideal world, we would get an investor to fund the company solely through equity, without dilution, at a share price closer to where I believe the company should be valued given the possession of two world class assets, operated by a top level senior management team both at the mining site and in the boardroom, and with no debt issuance required. I shall leave you to figure what the share price should be in that ideal world, but I would speculate that the share price would meet my expectation for a double digit valuation by year end quite easily. 3. The share price does appear to have a seller above 6p at this time, and appears to have had for some time. However, a successful completion of the funding will erase the seller simultaneously, and this is undoubtedly the best way to deal with both the seller and the undervalued share price. However, should the seller become desperate to raise money due to circumstances external to Paragon, we will use our recent financing to ensure that there is minimal volatility to ensure that we retain the current valuation at a minimum to finalise terms for the funding. 4. I have stressed constantly to our senior management that I want to “flick the switch” into production the minute we complete the acquisition of Mothae and receive the funding, and have been assured that all the plant design and additional equipment for both assets is ready to be delivered and operated, including the potential to acquire two new Tomra XRT machines for immediate implementation. As a consequence, we remain on schedule to be in production on schedule in the 3rd Q. Separately, I want to re-iterate that I am not trying to excite investors to speculate in Paragon for short term gain. I am seeking to detail the business strategy to existing and potential shareholders which is to create a world class, vertically integrated diamond company, in control of its own production and seeking to aggregate additional second party mining production through our proprietary distribution pipeline, and retaining significantly more revenue and price margin that diamond production companies have done to date. So current and prospective investors should prioritise their investment focus on deep value positioning at what I think is a low valuation relative to enterprise value in Paragon, for gains in the next 12 to 24 months, rather than fret on a day to day basis about the share price performance, what day the share price major re-valuation may occur, or whether mining starts on this day or that day. The diamonds are in the ground. They are Paragon’s asset and they are not going away or subject to fashionable whims or seasonality. Our expectation is that large sized diamond prices (and after all, that’s why we are in Lesotho and what we expect to focus our production on) will increase year on year from henceforth and for the foreseeable future. We have been focused on placing ourselves in the strongest possible position to ensure that when we do start production in the 3rd Q, we can sustain production at optimal levels for the indefinite future, regardless of global economic cycles, prejudicial financial sector conditions or any breakdown in geopolitical stability. This also entails wanting to be able to rely on a secure pipeline of second stage funding in 18 to 24 months’ time when we move to full production at both mines, regardless of the above set of macro conditions, and much of our recent discussions with ITGT and other interested parties who have approached us lately have been to ensure that phase two funding is within their capabilities and ambitions, so that we do not need to seek third party funding once again at a potentially precarious time and on associated potentially poor financial terms. Let me give you some financials – at full production, in two years’ time, we project to be producing 110,000 carats, with combined minimum anticipated annual revenue of $160 mln (which does not include the valuation of diamonds above 10 carats, which we believe are highly likely to occur from our two mines in Lesotho, a large stone country), and combined annual profit of $97 mln. If one adds the expected participation by Paragon in downstream profit generation in the distribution phase, these revenues should be significantly higher. On a 10x net revenue basis, Paragon’s current valuation appears ridiculously low, and it is this equation that investors should be focused on. I am confident that we can achieve our forecast production and revenue numbers, as they are so conservatively calculated. But first things first. Let’s conclude the contracts with Lucara. Let’s procure the approval from the Minister. Let’s execute the funding, and then let’s start production. The share price will take care of itself along the way. Private investors should be focused on where the share price is on December 31st this year, and not on each morning of each week as they currently seem to be. Paragon’s Board is wholly focused on building sustainable medium and long term enterprise value in the Company, ensuring that shareholders benefit from our growth, as we control our costs tightly, both at the mine gate and in executive expenses, and thereby significantly differentiate ourselves from most public companies, and the mining fraternity in particular, as to how they expense and remunerate themselves at the executive level. As I have said before, if private investors need a daily dose of financial excitement, Paragon is not the place for them. The casino or racetrack may provide more suitable entertainment. Kind regards Philip Falzon Sant Manduca Executive Chairman Paragon Diamonds Ltd 103 Mount Street London W1K 2TJ Tel: +44 207 182 1921 Tel: +44 7770 477499
scotty1: Paragon Diamonds – bizarre RNS: is it a buyback or a cashflow problem? By Nigel Somerville, The Deputy Sheriff of AIM | Thursday 18 June 2015 Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article. This morning Paragon Diamonds (PRG) released a very odd RNS indeed. On the face of it, mooting a share buyback programme would send a strong signal to the market that the board either thinks the share price is too low, or that the company has more cash than the board knows what to do with. But for a company still in a capital intensive phase this is… unusual…. to say the least. The deal announced was that Paragon has borrowed £500k at 1.25% interest per month (about 16% annualised), plus a 3% arrangement fee – but only until September. We are told that the company may use the funds raised to initiate a share buyback programme. On the other hand it may be used to support short term working capital requirements. Now call me a cynic, but it is the latter which catches my eye. So is the share buyback just a red herring? Well if it is, the company has gone to extraordinary lengths to justify it. I quote Exec Chairman, Mr Philip Falzon Sant Manduca: "Paragon's share price, in my opinion, should already be in double digits, and I have no doubt that it will be shortly after production commences. I am also aware that poor price action can fuel rumours and negative perceptions amongst existing and prospective investors, and I am determined that this is not going to happen whilst I am involved with Paragon. Shareholders and the market should view this short term debt facility principally as a mechanism for the Board to remove any shareholders if they wish to exit, promote positive sentiment around the share price at this important time and ensure that the Board transition the share price in a strong and proper manner during the coming weeks, thereby enabling a more efficient share price valuation to emerge." So Mr Manduca is telling the market that it is just being way too negative, has the share price far too low and its valuations all wrong – way to go, Phil, you tell ‘em! But not content with telling the market how to do its job, he’s also off to Lesotho to tell its Minister of Mines how to do his! I quote: Paragon Chairman, Philip Falzon Sant Manduca, is scheduled to meet the Lesotho Minister of Mines on the 22 June 2015, specifically to request immediate approval for the Mothae Acquisition, so that the Company can commence production promptly. This meeting follows multiple meetings between the Minister and Paragon's Managing Director, Dr. Stephen Grimmer, who has fully briefed the Minister on the Company's prospective mining strategy for both Mothae and its Lemphane kimberlite project ('Lemphane') also in Lesotho…. The Paragon board anticipates the Minister will grant approval promptly…. Next up, world domination. Of course, buried in between the lines is the real reason for borrowing half a Bernie for three months at an annualised interest rate of about 16%, plus 3% up front: whilst the company has a funding package of $26m all lined up, the cash is yet to be released. This funding package looks to be a great deal – so hats off to Mr Manduca on that – but pro tem it seems that the company needs cash while it awaits completion of the Big Deal. And just to underline the red herring of the buyback, we are told that the £500k loan announced today can, at the election of the lender, be converted into shares – albeit at 7p, against the current 5.6p (last seen). Why, if Mr Manduca is telling the market that the share price ‘should already be in double digits’ has it just given the lender the option of buying shares at 7p, I wonder? I have a small holding here, originally bought in the hope of seeing some gains. I’m hanging on to them for now – if nothing else for the sheer entertainment since it looks as though AIM has just discovered the man that makes Big Dave Lenigas look like a shrinking violet! But I would prefer to see Mr Manduca focus his energies not on the day to day movements of the share price and telling everyone what idiots they are (even if he is correct!), but on delivering that highly prized – but seemingly unfashionable on AIM – goal of profits and dividends.
supreme mo: Good evening all. Thanks for all the contributions so far, it's very much appreciated especially Swooped. I am much happier with my investment over the past few weeks developments. I just wanted to pass on my understanding of the situation following others comments relating to 'MM Games'... I accept that mms do play a part to a large extent with regards to share price movements here, but this is an order book stock (SETS), and so 'mm games' are limited somewhat as the price is mostly driven by buy and sell orders on the order book. OK, I will try to explain what I mean here: Today the price was 6.05-6.15. You could sell 50k at 6.05 but only buy 25k at 6.15. These were orders i.e. someone willing to buy 50k at 6.05 if you wanted to sell to them and equally someone was selling 25k at 6.15. This was nothing to do with mms. On Level 2 you can see what is an order and what is a market maker. The mm winterfloods was on the bid at 5.9p up in 75k shares and the first mm was at 6.4 from memory on the offer. The rest in between are orders that brokers put on. To confuse things further, a large buyer or seller can disguise their order on the order book by doing what is called a 'reload' so lets say the 50k on the bid at 6.05 actually wanted to buy 500k at that price, he could do a reload of 50k x10. The reason he/she may want to do this is that if they went on the bid for such a large amount of stock then traders would see this as a sign of strength and buy in resulting in the big buyer not having his/her order filled... The reverse occurs for a large sell order. To an extent Lanstead have been doing this for a fair few months offloading their stock. If it showed on L2 that there was a supply of 10m shares at x price, many investors would run for the hills as the near term prospects of a price rise may seem unlikely unless a large buyer occurred! One thing Level 2 does not show is the orders done behind the scenes through mm's.... Sorry if this confused anyone, but I don't think it is true to blame mm's here for the stagnation in the PRG share price IMO. GL all.
Paragon Diamond share price data is direct from the London Stock Exchange
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