Clearly you are experienced and aware of the very high risk; at 0.5% of your portfolio it won't hurt you even if it went wobbly. AIM is a dirty place that sucks in too many other unsuspecting dreamers on punts like this.
Okay, but don't forget that Teeling sold the AK6 kimberlite production licence to Lucara, and we got shares in Lucara as a consequence - which didn't do too badly. Residual assets were left with BOD... and Teeling is much better at finding diamond resources than mining them with all the capital cost and production issues which naturally follow.
Small, valuable mines, are much better for Teeling to manage through BOD - although I agree investment in such a company is high risk, quite long term and not for the faint-hearted, nor for day-trading. The drift in the SP down 80% or so over more recent years has though allowed me to accumulate x17 more shares quite cheaply - and is still just 0.5% of my overall portfolio.
This, however, remains a gamble as you say... to be held more in hope than firm expectation. I won't be checking progress here every day, that's to be sure.
Good luck, but I'd rather swallow razor blades myself as this looks like it's clearly for fast & loose gamblers. I can remember how excited folks were when Teeling floated this and it was pushing 7p. How are those early investors feeling now? One look at the downtrending chart since 2011 says it all and I wonder if recent "managed" news flow could perhaps be a precursor for fund raising and some hefty dilution? Maybe, maybe not just now.
Yes, today's news is very encouraging. I'm glad I put my buy order in at 1.4p ahead of the rush; the first order through today. For the first time in many years I am now showing a small profit after being 80% down.
Earn into advanced diamond project, located in South Africa
Botswana Diamonds has entered into an option and earn in agreement with Vutomi Mining and Razorbill Properties 12 (collectively called Vutomi) to acquire advanced kimberlite projects located in South Africa.
Vutomi owns 10 prospecting rights covering 50,000ha of ground that contains 20 kimberlites, many of which are diamondiferous, located in the Limpopo, North-West and Free State Provinces of South Africa.
The Flagship project is Frishgewaagt, located in the Limpopo Province and adjacent to the Marsfontein Mine previously operated by De Beers. Frishgewaagt contains a 4km long dyke and blow system. A detailed ground based geophysics and a sampling programme has been completed and a diamond and percussion drill programme is currently underway improve the understanding of diamond grade and size. The previous sampling returned an average rough diamond value of $180/ct from 247cts. All mining permits are in place at the project.
n Botswana Diamonds has the option to acquire a 72% interest in Vutomi, in stages (outlined in next bullet below), for a total of £942,000 in cash, £581,000 of which is spent on the project, and 100m shares. The balance of Vutomi will be owned by the Companys Black Economic Empowerment partners.
n Botswana Diamonds will pay Vutomi an exclusivity and option fee of £122,000 within 60 days, £61,000 in cash and £61,000 in shares at 1.9p. Following this, Botswana Diamonds will have 12 months to invest £215,000 on exploration to earn 15% of the Vutomi and will gain the exclusive right to fund the projects. Botswana Diamonds will then have an additional 12 months to fund an additional £366,000 on exploration to earn an additional 25% interest in Vutomi. Once this is completed Botswana Diamonds will have 9 days to issue the balance of 96.8m shares and settle Vutomis shareholders loan accounts of £300,000 in cash to earn an additional 32%.
n On the commencement of the agreement Vutomi will establish a technical committee made of 2-4 representatives of both Botswana Diamond and Vutomi. James Campbell will be appointed to the technical committee.
Northland Capital partners view: Very positive news for Botswana Diamonds giving the Company access to an advanced exploration project, with near-term production potential, at low initial acquisition cost and the opportunity to earn a majority interest should the result prove to be positive. The Company will also continue its efforts on its earlier stage exploration projects located in Botswana as it looks to advance this exciting new interest.
Dr Ryan D. Long +44 (0)20 3861 6621 [email protected]
2016 The Great Irish Share Valuation Project (Part IV):
Company: Botswana Diamonds (BOD:LN)
Last TGISVP Post: Here
Market Cap: GBP 6.7 M
Price: GBP 1.975p
Welcome back to The Never-Ending John Teeling Story I had previously tagged BOD as worthless, so Im gobsmacked to see it worth more today, at least in terms of market cap (share price is actually lower, but the share count doubled). Nothings changed just more reports of ALROSA geologists wandering around Botswana, taking samples & finding the odd 1mm (thats not a typo!) micro-diamond here & there. Sure, an ALROSA JV is impressive, but Im beginning to wonder if its really just a staff holiday scheme for their (probably) badly paid geologists put in a week or two on safari in Botswana, then head down to Durbans Golden Mile for an all-expenses-paid getaway! The only impressive news is the appointment of James Campbell as MD his resumes certainly exemplary, but it remains to be seen what he can do with something like BOD!? As for the companys finances, theyre more appalling than ever annual cash burn will likely exhaust cash on hand (less net payables) some time in H1-2017:
(GBP 0.5 M Cash 0.1 M Net Payables 0.6 M Annual Cash Burn) / 338 M Shares = Zero
Yup, once again, BODs obviously worthless how they keep raising money is beyond me. Its astonishing to think unrelated parties, i.e. the great unwashed, occasionally buy this stock. Have they ever looked at the price chart what are they hoping for here, exactly?!
Price Target: Zero
For related links/graphs/files & other TGISVP analyses/price targets: Google the Wexboy investment blog.
EXTRA: Botswana Diamonds To Launch Eight Hole Programme With Alrosa
SO MAYBE THIS COULD BE THE REASON FOR SUDDEN INTEREST ?
Botswana Diamonds said its 50:50 joint venture with Alrosa, the world's leading diamond producer, will start next stage exploration at the end of September in the Orapa and Gope areas of Botswana.
Botswana Diamonds says that four core holes will be drilled in Gope on PL 135; two core holes will be drilled on kimberlite AK22 on PL 260 in Orapa and two core holes will be drilled on PL 085 in Orapa.
It says an intensive programme of geophysics and soil sampling will be carried out on the 4 other licences held in Gope and an Alrosa team of 7 specialists will be joined by Botswana Diamonds geologists and support crew.
Botswana Diamonds says final results are still awaited from the analysis of the 80 tons of material recovered from the two Large Diameter Drillholes (LDD) on kimberlite AK21 on licence PL 260 in Orapa.
Delays in finding a company in South Africa capable of concluding the work were compounded by an inconclusive result.
Concentrate is being returned to Botswana for evaluation by Alrosa specialists.
Core which came from earlier boreholes on AK 21 is being sent to a laboratory for caustic fusion analysis.
Chairman John Teeling said: "The Alrosa/Botswana Diamonds Joint Venture will shortly begin an intensive twelve week exploration programme on our ground in Botswana
The only people who will make real money on this stock are JT The insider traders and the market makers. The MMs will have borrowed stock to supply the market marched the price up and now they will be enjoying the shorting process so that they can buy it back for a pittance and pocket the dealing charges and the skimmed profits. The company is likely to issue a cash call at some time in the future deeply discounted and massively diluting the value of buy and hold brigades stock. Take a look at the News History and the long term chart of HER. This is a classic model to show how its done. You will apparently only learn the hard way .If it were this easy to make a killing on the market we would all be multimillionaires. Diamonds are very valuable because they are difficult to find in commercial quantities and expensive to process. It is probable that this development will not be commercially viable. End of story
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