West African Share Discussion Threads

[jungle jim] 21/7/2009 09:15

Administrative costs for 6 months to April £228,000. As they don't break that down into direct mining costs and others, I'll assume and extrapolate that as total annual costs of £0.5M. Make an assumption that start-up costs run higher than production costs, say just under half a mill. I still reckon there's a profit there of between 200 and £300K.

It's a nice change for AIM, an explorer that is actually producing (Minco, anyone?) and with a potential for profit with yet more territory to work. I see my glass is half full rather than half empty on this one :-)

[bobbieblock] 21/7/2009 08:52

Sorry to interject some realism but revenue from sales at 35000 tpm would be
$284200.
Mining costs assuming $5 per tonne would be 5 X 35500 = $175000
OPerating profit prior to EBITA and other costs would be $1320000.
Thats about £800000 at current exchange rate. At best I suspect we will break even at curent prices and production, if not be loss making until more mines come on line.

[jibbajabba] 21/7/2009 08:36

Jungle Jim - considering your simple calculation of 3.4M/yr I would say our total market cap of £3.41M is pretty low?

[currypasty] 21/7/2009 07:57

thats big numbers, for a tiny company, Jim!

[jungle jim] 21/7/2009 07:37

For those who can't be bothered, here's the sums.

USD 50270 for 433 carats give an average of $116 per carat

35000 tonnes per month at 7 carats per hundred tonnes (assume that is what cpht stands for?) gives 2450 carats per month.

2450 carats per month at $116 per carat gives £284437.60 PER MONTH.

That's £3.4M annually.

A bit simplistic and all on averages, but those numbers will do me.

[someuwin] 21/7/2009 07:10

RNS Number : 9843V
West African Diamonds PLC
21 July 2009

21st July 2009

GUINEA PRODUCTION UPDATE

16.27 carat stone sold for USD1,000 per carat

The remaining 416.73 carats sold for USD34,000

Overall value of USD116 per carat

Expansion of production underway

The board of West African Diamonds plc, the AIM listed diamond miner (AIM: WAD), is pleased to report on the sale of a sample parcel of diamonds from it's 100% owned Bomboko alluvial diamond mine in Guinea.

The diamond parcel weighing 433 carats was sold in Antwerp for USD50,270. The largest stone, a 16.27 carat gem, was sold for USD1,000 per carat, with the remaining 416.73 carats being sold for USD34,000.

WAD is now expanding production at the Bomboko mine from 3,500 to 35,000 tonnes per month and based on current production expects a grade of 7cpht. The expanded production plant is currently being commissioned and the higher production rate is expected to be in place within eight weeks.

James Campbell, Deputy Chairman of West African Diamonds, commented:

'We are pleased with the progress at the Bomboko Mine. The price per carat from what was a spot sale of a small sample is most encouraging. Combining the carat value with the grade gives an economical return per tonne of gravel mined. We are moving quickly to expand production to 35,000 tonnes per month. All essential equipment is on-site and is currently being commissioned.'

[8trade] 20/7/2009 13:04

Still a big margin for a market maker so will happily offer stock
at mid price if they are still making 15-20% profit on it.

I'd really settle for a consolidation for a few days at this level,
lets hope the mm's are happy to do the same, with large buys mopping
up the stale sells.

[moosh2] 20/7/2009 12:50

best thing about big spread - buying under midprice! check the 50k at 4.74p...kind of obliterates the rest of the sells this morning!

[moosh2] 19/7/2009 21:57

i think in proper trends, people that want to buy for the long term aren't put off by the spread and will buy big, which will then push up bid and shake out weak sellers. if people can buy at 4.9-5p then it's still a good price. remember all those people who bought in April between 4-4.5p - some might be looking for that quick exit so don't want to push the bid up higher before buying momentum has kicked in properly. this week is the week to watch the weekly chikou - it's imminent to cross.

[ilostthelot] 19/7/2009 21:19

Fair point Moosh would still rather they tightened it a bit .It can be a put off to potential buyers.

[moosh2] 17/7/2009 15:39

i think a big spread is good - it deters people from daytrading and if the longer term trend is to be assumed for this illiquid share, then i'm all for a slow haul up to wherever it may end up.

[ilostthelot] 17/7/2009 15:21

Yep curry it would be. I suspect they wont until the share price creeps up a few pence.They had tightened the spread right up a few months back on its last flurry upward.

[8trade] 17/7/2009 12:27

Online spread is 4-4.95p...37.5k v 100k, smaller trades might get
inside that spread.

All the mm's quote 4p bid, 2 are 4-5.5p and other 2 are 4-6p.

[currypasty] 17/7/2009 12:09

would be nice if mm's tightened up that spread a bit.

[father o toole] 17/7/2009 12:05

50k buy at 5p, i like ;0)

[father o toole] 17/7/2009 09:23

afd, rising FAST

[encarter] 17/7/2009 09:20

8trade, ok it's a sell if it makes you happy.

[father o toole] 17/7/2009 07:37

morning, from PDF update this morning, they say rough diamonds are up 65/70% off their lows

"The Company continues to monitor recent trends in the movement of rough diamond
prices following the substantial reductions late in 2008. While recent trends
reflecting upward movement in rough prices to 65 - 70% of mid-2008 prices
relative to the low of around 50% late in 2008 are promising, the Company is
still waiting for signs of sustainability in these trends"

[moosh2] 17/7/2009 00:29

i thought MMs generally fill sell orders on the way up and buy orders on the way down, and i've found that they usually stick bigger orders in as late or delayed trades after a move in the sp, i'm guessing so that it doesn't spook traders (ie, a big sell on a rising sp, or a big buy on a falling one). perhaps it is the final and lowest sell order on MMs books before they can move up sp? perhaps they have been filling it all the way since the upwardness in April and it has been these last few trades that have finally filled it? that'd make sense to me.

[8trade] 16/7/2009 23:46

encarter.

How exactly do you fill a 500k buy order at 4p when there's been
only around 100k sold below 4p recently ?

Seriously i'm bullish on Wad but cant see how that trade can be
a buy, i cant lie ??

[encarter] 16/7/2009 23:43

One of my better weeks so far, with WAD and ACTA. Hopefully it will end on a high note.

[encarter] 16/7/2009 23:40

Who's got 500k to sell at 4p? It's a buy order filled. Question is, do they want anymore? We will find out shortly.

[moosh2] 16/7/2009 21:55

oh, if a worked order goes through between the current bid offer spread, does that mean it can still be either a buy or sell, regardless of which side the trade price tends to?! i suppose there's nothing to stop it, other than 'convention'. follow the money (flow!).