(DCP.L) Diamondcorp PLC Buy/Sell

me too. I bought in a few weeks ago when it seemed to have a good future a/c to Shares mag

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share price stuck in a very narrow band with exceedingly low volumes, guess the company will have to raise cash from somewhere soon

wonder what islamic bank will do with their large stake on which they're suffering a large loss (as well as their other property writedowns etc.)

maybe some sort of M+A might take us out of our misery, soon I hope, am getting a bit weary of looking at this share in my portfolio

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http://www.miningmx.com/news/diamonds/namakwa-sizes-up-diamondcorp.htm

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Has anybody found this "press speculation" yet?

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Announce they're in takeover talks and share price hardly moves on very light volumes. What is it with this company ....?

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any views on company's prospects in light of update of 31 July ?

currently price seems lodged in 18-19p band

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All is not good news at all!!!

Chitsy, noticed you ramping this too on LSE as "coranationst". You have previously been banned from that site for your constant ramps involving many shares in the past. You are the old "chrisgold" "joeyjames"and "igloo"

Instead of leading inexperienced investors down the road to ruin with your constant ramps I suggest you shut up and get the facts right before you post.

All you do is copy and paste RNSs without fully understanding the content yourself. If you look closely into DCP you will see they probably have a major problem with the Lace mine and that is why they have advised potential investors to be cautious. You have not picked up on this and this is why you must stop this blatant ramping.

"The plans reveal that more kimberlite has been extracted above the -240m level than was previously estimated in independent competent persons' reports (CPR). The CPRs do not incorporate kimberlite above the -240m level in resource estimates but concluded that a significant volume of Main Pipe and Satellite Pipe kimberlite existed between -100m and -240m. As a consequence of the level plan data, it is apparent that until the 4m x 4m access decline reaches the -240m level in the second half of 2010, DiamondCorp's mining will be limited to 1,000 tonnes per day. The reduced mining rate until the -240m level is reached will have a negative impact on cashflow from operations, the full extent of which will be determined when grade and carat value from the current sampling programme is completed by the end of July".

"Accordingly shareholders are advised to exercise caution when dealing in their shares until details of the sampling programme are announced, which is expected on or about 31 July 2009".

Do you understand this statement? If so, explain it to me because I believe you know nothing and are nothing more than a chancer with the potential to lead inexperienced investors to the poor house.

Anymore of this and I will be reporting you

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Operationally, we are in good shape and we expect to continue
to achieve the targets that we have set. In next year’s report, I look
forward to reporting on the performance of an operating
diamond mine.

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Also, Lace has the potential to deliver soughtafter
gemstones. In addition to the high quality white stones, the
Lace tailings have yielded significant numbers of fancy yellow, pink
and signature lilac stones. During June 2008, a 34.84 carat non-gem
diamond was recovered, the largest diamond to date, underlining
the potential for the pipe to deliver sizeable stones and
demonstrating the efficiency of the Lace recovery plant.

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Importantly, the Company is fully-funded as a result of two share
placements (raising £3.55 million) and the raising of a project loan
of US$5 million (£2.8 million).We are particularly pleased to be
able to bring the Lace mine back into production without further
recourse to the stricken and costly financial markets.

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A key development post year-end (on 5 February 2009) in a
process undertaken throughout 2008, was the granting of the
mining right for the Lace underground mine by the South African
Department of Minerals and Energy (DME) in terms of the Mineral
and Petroleum Resources Development Act. Our 21-year lease,
which is renewable, provides a legal tenure, a certain operating
framework and a licence to operate in the broadest sense of this
term.We have been grateful for the co-operation of the DME and
others in finalising these legalities and remain convinced that the
South African mining environment is both investor-friendly and
pragmatic.The delay in the implementation of the proposed Royalty
Bill, which would have imposed a royalty of up to 5% on diamond
revenues (with effect from this financial year), is evidence of this and
will protect and stimulate the local mining industry, both objectives
of Finance Minister Trevor Manuel that show insight and foresight.

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not many about. once prices really stasrt to rise these will shoot

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DiamondCorp has reached an agreement with a Botswana exploration company, Geoperspectives (Pty) Limited to earn a 77.5 percent interest in three diamond exploration licenses in Botswana. The licenses total 109.2 sq km and contain nine known kimberlites.

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South African diamond miner DiamondCorp plc tendered 1,533.95 carats of gem diamonds, including a 14.74-carat clear white stone, in Johannesburg in May and achieved an estimated US$120,000 (R963,541), representing a price of US$79 per carat. The dollar per carat exceeded the management's revised forecast but was slightly lower than forecast on a rand per carat basis due to the strengthening of the rand.

Additionally, 292.61 carats of non- or near-gem diamonds were recovered. The non-gem diamonds were tendered and sold at US$3.74 per carat. A further 2,367.51 carats of gem diamonds recovered earlier in the year from tailings re-crush were also tendered and sold for an estimated US$110,000 (R890,368), representing US$47 per carat.

"Demand for the Lace diamonds in May was strong as cutters and polishers sought to fill holes in inventories," says Paul Loudon, DiamondCorp Managing Director and Chief Executive Officer.

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June 17, 2008
Diamondcorp Could Be A Natural Bolt On Acquisition For Existing Producers

By Our Man In The City

Fourteen months ahead of schedule, South Africa-based Diamondcorp is gearing up to initiate underground mining at the Lace diamond deposit. By the end of the third quarter, it will have reached kimberlite rock and be producing at the rate of 1,000 tonnes per day. Financing is close to completion and expansion plans are already under consideration. For managing director Paul Loudon, it’s a welcome relief after Diamondcorp spent the past year struggling in the face of power outages and operational problems with a crusher that’s used to treat tailings.

Mining consultant SRK originally proposed that Diamondcorp should spend R350 million on refurbishing an old shaft at Lace, adding a second access to comply with South Africa mining laws. Bulk tests, said SRK, would take 14 months and then another 12 months would be spent in development before production started. Mr Loudon and his team decided on an alternative strategy. “We were concerned about going underground beneath a water-filled section. We didn’t want to risk any possible water leakage that could compromise our workers’ safety, so we opted to do a decline to get into the kimberlite. It’s a much safer and more immediate way to start underground operations.”

The company has budgeted R50 million for this year’s developments, and it’s already raised R26 million through an equity placing. The balance will be met through a debt package. “We’ve already had one offer on the table, and we’re now talking to other banks about what they could offer”, says Mr Loudon.

A small but key component of this spending will be a new crusher for the tailings at Lace. “The recrusher was forecast to account for thirty per cent of our diamonds and forty per cent of our revenue. The crusher wasn’t up to the job as it couldn’t cope with certain sized materials”, comments Paul. Rather than discard the problem kit, Diamondcorp has calculated that the machinery will be ideal for treating secondary material from the underground mining.

Encountering such problems would normally knock a company off balance but it’s been a valuable lesson for Diamondcorp, as Mr Loudon explains: “The tailings have allowed us to beta test the dense media separation plant and associated components. We’ve always thought the company should be judged on the kimberlite mining, not the tailings, and this remains the case.” But Diamondcorp won’t turn its back on tailings treatment once underground operations commence. The recovered diamonds may be small but they provide a steady additional income to the business that should continue for some time. Out of 3.6 million tonnes of tailings, only 700,000 tonnes have so far been processed.

Diamondcorp didn’t escape the recent power problems that plagued industries in South Africa. Together with the crushing difficulties, power issues caused the company’s financial losses to more than double in 2007. But it’s now days away from securing an alternative power source, whereby it will piggyback onto De Beers’ new power line for the nearby Voorspoed diamond mine. On 26th June, Diamondcorp will plug into the new supply line. “We’re hoping it shouldn’t be subject to as much load shedding, as through Eskom’s power lines”, says Mr Loudon.

Including the refurbishment of the original shaft, and if underground operations all go to plan, Diamondcorp is targeting 100,000 carats production in 2009 and 400,000 carats in 2010. Mr Loudon reckons the company should comfortably manage 50 per cent profit margins on US$60 million revenue a year. It’s a small but tidy income and enough for the managing director to hope for Diamondcorp to be compared with the likes of Petra Diamonds. This is perhaps a bit over-ambitious considering Petra’s rapid ascent in the diamond industry following its acquisition of former De Beers projects, but Mr Loudon is determined that kimberlite mining wil

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Emerging Diamond Producer Likely to Be Sought After?

By Stephen Clayson
03 Jun 2008

http://www.resourceinvestor.com/pebble.asp?relid=43260

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January 28, 2008
Diamondcorp Survives Power Cuts and Lightning Strikes to Maintain Production

By Rob Davies

Mining is a difficult enough business without acts of god interfering with production. Paul Loudon, Managing Director of Diamondcorp, spoke to Minews recently and ran through some of the problems he and his team have faced at the Lace Mine in the Free State Province of South Africa. Unseasonably high rainfall, lightning strikes, and power outages closely followed by power surges which then damage electrical equipment have been among the challenges thrown at the team commissioning production from the company’s tailings project. Despite these problems in the six months to December 2007 the mine plant produced 25, 266 carats from 324,045 tonnes of tails to give an average grade of 7.8 carats per hundred tonnes (cpht). Of that about two thirds were gem quality and 8,574 carats were sold for an average price of $64 a carat. That makes the operation self sufficient in cash flow terms.

Knowing that the recovery plant works gives Paul and his team the confidence and the data to start accessing primary material from the kimberlite pipe underground. To do that a ramp will be sunk into the pipe to allow a bulk sample to be taken. At the moment Diamondcorp is using a rule of thumb that grades in the kimberlite will be two and half times that found in the tailings. That means up to 27 cpht with a valuations possibly as high as $120 a carat. None of that will be known until the third quarter when the bulk sample can be taken. Once it’s done, and if the results are as expected, then the feasibility study can be started and on satisfactory completion of that the BEE partners will then deliver the R26m they have committed. Paul thinks that the total capital cost of phases 1 and 2 will amount to about R100m. Most of that will be covered by the BEE funding, cash flow from operations, and the £1.5m already in the treasury. Additional funding may come from a small equity financing which could accompany the listing on the JSX that Diamondcorp is working on now with brokers Investec.

A significant part of Phase 2 will be the rehabilitation of the old shaft which will be used for ore haulage. Paul says most of the difficult work has already been done in re-establishing the collar down to solid basalt. Two accesses are now required by law so the ramp will be used to provide access for men and machinery. A much bigger problem has been the power supply due to South Africa’s chronic shortage of capacity. A second power line has now been installed coming from the opposite direction and Paul hopes that the rolling power cuts will always leave at least one of his feeds to have power.

In the meantime, for those looking for upside, there’s plenty of additional value to be had in the fancy yellow and pink stones that can be found at the project. Paul says their values can be three to five times that of comparable white stones. If, as he hopes, 5% of production turns out to be fancy stones then the potential revenue stream starts to look very exciting. Currently the mine is processing 4,000 tonnes of tailings a day but once the underground starts it will supply a quarter of the feed and with 3.6 million tonnes of tailings left to process there is plenty of material to keep the plant supplied for a long time yet, god willing.

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Does anyone have any idea when the current suspension is likely to be lifted? And what is most likely to happen to the price when it is?

Mike

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July 31, 2007
Diamondcorp About To Start Production

By Rob Davies

The theory that no mine ever runs out of ore, but simply becomes uneconomic, is being widely tested in this commodity boom as many old mines are being reopened and re-evaluated. That applies to old diamond mines as much as any of the other commodities and the latest on the scene is Diamondcorp. It listed on AIM on February 1st 2007 and is in the process of opening up the Lace Mine in the Free State Province of South Africa. The old tailings and unexploited remaining kimberlite are estimated to contain over 14 million carats of which 370,000 carats are estimated to lie in the tailings. These accumulated in the period between 1902 and 1931 when the mine was operational. Recovery rates in those days were not as high as can be achieved by modern processes and the plan is to process the 3.6 million tonnes of tailings through a newly constructed dense media plant capable of treating 1.6 million tonnes a year.

The same plant can be used later to process material from underground by the simple addition of a primary and secondary crusher. Bulk testing of a 100,000 tonne sample of the tailings proved that 10.3 carats per hundred tonnes (cpht) could be recovered and the plan calls for the production of 12,000 carats a month over the 27 month time frame for processing the tails. Stones from the tailings were valued in 1998 at US$46/carat and were later re-examined in 2005 when their value had risen to US$69/carat.

In a thorough review of the company and its flagship project analyst Cailey Barker of Hanson Westhouse says the real risk lies in the value ascribed to the stones in the unmined kimberlite. An industry rule of thumb is that stones in tails are worth half their value in-situ. On that logic the remaining 13.7 million carats are worth US$125 each on average. That cannot be tested until a bulk sample is taken from the bottom of the old 345 metre shaft that is being rehabilitated. Cailey says the tonnage is known to a reasonable degree from earlier drilling but it is the grade that will determine the success of the mine.

Paul Loudon, managing director and chief executive , says they know the grade in the upper levels is 27 cpht as a result of the drilling done by the previous owner in 2005. They also know from micro-diamond studies that the diamond grade in the deep underground will be higher than that because of the higher micro-diamond count. Nevertheless, the lack of enough material is why the underground resource is only an inferred one on the SAMREC standard. Now that tails processing has started the clock is ticking as the plant needs to have fresh feed available in two years time when that resource is exhausted. In that period the mine has to be dewatered, the old timber lined shaft made good to access the top of the deep underground for a large bulk sample of 20,000 tonnes to be taken for the recovery of 5,000 carats.

Unfortunately, this shaft is too small for production purposes and a new, larger one will have to be sunk. Cailey estimates this, and the plant upgrade, could be done for US$27million and would be conditional on a positive pre-feasibility study. That is quite a modest figure but Paul Loudon says the shaft can be put in by a raise borer which reduces the costs and speeds up the process. Diamondcorp raised £2.5million when it listed on AIM and that will be enough to fund the study. Beyond that Hanson Westhouse is forecasting revenue of £2.7million for 2007 and a modest profit of £0.5million in 2009 before revenue and profits really pick up when underground mining starts. While that needs to be shared with its BEE partners, who own 26%, it still leaves enough for the broker to estimate a value for the company of £60million which is twice what the market currently thinks it is worth.

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Seems like this company has plenty of potential and could be better positioned than some of it's competitors. However, there's been very little volume, and very little interest if this forum is anything to go buy - surely it has to be a good 'buy' given the prospects.

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