AIM-listed Karelian Diamonds (KDR), like fellow AIM-listed Conroy Gold and Natural Resources (CGNR), is run by the good Professor Richard Conroy. Tom Winnifrith has exposed a pretty gruesome histoire at Conroy, but what about its little brother?
I note also that Karelian just like Conroy is being delisted in Ireland. I wonder why Last year Karelia released its full year results (to May) on 17 November, so I reckon the numbers are due this week. In any case, they have to be released by the end of this month or it will be suspension time. Incidentally, last years results came with the announcement of a capital reorganisation for that read a split of the shares into one ordinary of a reduced nominal price and one deferred: the price had slipped below nominal so the company couldnt get a placing away.
In the run up to this years results we have had three ramptastic RNSs in the last four weeks: Promising New Exploration Data (which seemed to indicate they might be getting close to the diamond source), Exploration Permit Granted (woohoo .) and Kuhmo Diamond Discovery Update (which identified a work programme to find the diamond source for a diamond they found way back in January). All in four weeks. Before that there were just a handful of RNS going back to March.
So is the company on a propaganda-fest? With audited annual results coming up and associated Going Concern issues? Surely not!
At the half year, Karelian reported a loss of only EUR 117,056. But the cashflow showed an outflow of EUR 292,513 to leave just EUR 49,224 of cash in the bank. Thats a bit tight especially when the balance sheet shows EUR 210,727 of current assets somewhat dwarfed by current labilities of EUR 545,233 (all trade and other payables).
The company did do a placing in April which brought in EUR 914,500 and a further EUR 505,000 the previous December so perhaps EUR 1.35 million after expenses came in. But those interims were to November and we know that the company ploughed through EUR 292,513 in the six months to then.
It is now almost a year on from there, so might we assume a further, say, EUR 600,000 out of the door? Knock off the net current assets of MINUS EUR 334,506 and we are looking at a black hole of EUR 934,000 or so. Taking the placings into account, and the pocket change left in the bank at the last half year and you might have total cash of EUR 465,224. The problem is that for an unqualified Going Concern signoff the company needs twelve months funding and at the last count that looks more like an annualised rate of around EUR 600,000. In other words Karelian needs a placing.
With its annual results due in about two weeks maximum, that suggests there is a discounted bucket-shop fundraising heading this way and very soon. It also casts the last three ramptastic RNSs in a less than dignified light, as an attempt to suck in new buyers and get the share price up. With all the shenanigans going on with Conroy, how easy will it be to raise perhaps EUR 200,000 for Karelian especially with a market capitalisation of only £2 million?
Well today there was good news that a further 5 pits have proved a kimberlite extension over 250m at sometimes 2 meters in width with another possible kimberlite pipe... Fingers crossed that the samples prove to contain those Lady Rocks... In my opinion still a good speculative purchase which seems to get better as time goes on.
"Tenon of the valley mining opposition to the civil movement representative Niillas Beaska Norway takes today in Dublin, Ireland Karelia Diamonds to the management position paper on the matter. The letter is also sent to the Karelia Diamonds partner, the mining giant Rio Tintolle both Finnish and Norwegian Governments.
Citizens Business considers the Irish exploration company receiving the Finnish mining authority tuk from the laws of Finland and in violation of international law, booking decision Sami home region. diamond exploration.
Citizens at the press release states that the business is not interested in any present or future negotiations, but it is opposed to permanently everything from exploration and mining activities in the Sami lands.
Karelian Diamonds Resources Ltd. was last year (2014) from TUKES booking decision possible diamond exploration permits for the Utsjoki. Booking The area is located in the Sami Homeland and respect the strict nature park. Booking The area is one of Europe's largest natural salmon river, and Finland and Norway border the river Teno River catchment area.
Bookings only give you the privilege to apply for exploration authorization which only justify a larger shipment, rock drilling and test excavations."
Well to me this sounds as if they have found an area where they can concentrate resources... Why explore somewhere else when you've already found a potential area. Seems like a good decision. Concentrate on the Khumo area... Where they recently found the new kimberlite deposit. I can't wait until the samples have been properly looked at. Yes there may be other better stocks but not with the possible WOW factor should there be a decent discovery. Worth a punt!
HPC is right..too long winded. Imo, diversify into other sectors eg pharma, tech, energy and keep mining and oil stocks at a minimum. Take a look at OXB, PPG, MDZ (also long winded but getting closer to deals)
A 1.1 carat stone, found 17 years ago does not demonstrate that this is a kimberlite that has commercial potential - especially since a production plant can cost $50 to $150 million to buy and install before operational costs to mine the ore...
This necessitates a large pipe/kimberlite and a reasonably high level of gemstones of good size/quality per 100 tonnes of ore.
Personally, I won't invest in KDR as the risks are too high, the projects are too long term and there are better options nearing full production such as DCP and FDI.
Seems as if we did get the Kimberlite find I mentioned in January.... My holding in DCP is up 36% at present. Averaged out on KDR at 158p so I still have a few pence to go until breakeven. The big question is reduce holding or stay put and take a £3000 risk?? Very volatile and speculative... I may just have a touch too much exposure.
I suppose what's significant is it is the first find of kimberlite in 10 years there. But on the Russian side of the Karelian Craton they are already producing diamonds.... So why not on this extension of the area???? It's not as if it been found in a totally unproven area. My opinion stick with it... Yes 3-5p maybe possible on speculation alone. If it does turn out to be viable ... Who knows how high it could go. So strong buy for speculation factor...
I don't think so... But if the Kimberlite find turns out to be diamond bearing then maybe even further over the weeks and months. The news will definitely lighten up the intrest in the shares... About time too. I'm near breakeven now. I'd say strong buy... But beware of fall back.
..and i'm reducing my holdings in OIL for quality precious *metal miners, *pharmas and *tech stocks >
The tech industry looks ever more exciting with newer technology, especially the applications of 'facial recognition' that has got hundreds of companies interested including the worlds airline industry....?
...sink or swim?
Big decisions in the oil industry as the oil price continues to collapse. Will the oil industry go into 'schizm' (a word usually reserved for the church)?
Investors must decide as the industry is about to end 120yrs of control over the world's oil energy resources and give way (finally) to the innovations of the electric vehicles powered by 'lithium' batteries...the big car makers are slowly switching to electric and will survive, while the oil industry will suffer huge losses and inevitable mergers or take overs, giving the small investor a chance, maybe to get his money back.....if that is, someone wants to buy out the company. Do or die, sink or swim, that is the decision many oil investors are making right now?
OIL STOCKS ARE IN SCHIZM
Oil Drillers Going to Die in 2Q on Crude Price Swoon
By Joe Carroll Jan 22, 2015 9:39 pm
Oil drillers will begin collapsing under the weight of lower crude prices during the second quarter and energy explorers who employ them will shortly follow, according to Conway Mackenzie Inc., the largest U.S. restructuring firm.
Companies that drill wells and manage fields on behalf of oil producers will be the first to fall after the benchmark American crude, West Texas Intermediate, lost 57 percent of its value in seven months, said John T. Young, whose firm led the city of Detroit through its 2013 bankruptcy.
Oil companies have slashed thousands of jobs, delayed billions of dollars in projects and dropped or scaled back expansion plans in response to the prolonged rout in crude prices. For oilfield service providers that test wells and line the holes with steel and cement, the impact of price reductions forced upon them by explorers will start to pinch hard during the second quarter, Young said Thursday.
The second quarter is going to be devastating for the service companies, Young said in a telephone interview from Houston. There are certainly companies that are going to die.
Oilfield-service providers are facing a double-whammy, he said. Even as oil companies are demanding 20 percent to 30 percent price reductions, theyre also extending wait times before paying their bills, enlarging cash-flow gaps for the drilling and equipment firms, he said.
I have put this company on my list of 'scammers' that only (seem) to exist for their ability to raise cash, with either no progress or very 'slow' progress at the expense of the small investor.
However, KDR is nearing its end game and i believe good news after many years could come at anytime? This tortoise COULD still deliver. No company would conceivably con so many investors for so long unless of course, they (the investors) can 'see' progress at the end of the tunnel...however, if they dilly dally for much longer pi's will put KDR firmly into Room 101.
This post from me to danpoe after he suggested that many companies exist 'just to pay wages' >
Fri 22:18 ENEG.L
danpoe.....Total failures, just a scam to collect their wages.
I've been saying that for years, yet i get ridiculed for suggesting such. You are the very first poster to say what i have 'known' for years. I had clear reservations that many 'tiddlers' on AIM are just there to raise cash, keeping the coffers topped up by endless placings and progress remaining at nil bar the odd "We are pleased to announce" Rns just to keep interest at a pitch.
eg....a few that spring to mind...that have really been 'at it' for years, conning investors of their money with no real progress to becoming a cash generator from real earnings bar-placings..... NRG, VAL, HER, RRL, KRD. Solg, Marl, Metminco, WHE, SAR...etc.
The list goes on but although some AIM stocks are genuinely progressing towards production or a t/o, we must all be aware of the many companies that issue 'great updates' yet have been issuing placings for years, diluting the shares. The worst of them..consolidate the shares. 90% of consolidations is a signal to get out. gla
DSF, Fans, check. 21 check. Carrots even the ugly ones are beautiful. Supermarkets looking at the twisted ones now.
Shug O' B, Marj, '05
Choo. Choo. Follow the train.
"In case anyone is wondering
Karelian Diamond Resources P.l.c. (KDR) is the holding company of a diamond exploration group focused on the discovery of potential world-class diamond deposits on the Finnish side of the Karelian Craton.
In July 2004, the Company purchased Nordic Diamonds Limited from Conroy P.l.c. and Karelian Diamonds Limited from Conroy Diamonds and Gold P.l.c., together with all intellectual property and confidential proprietary data relating to the diamond exploration programmes in Finland of those two companies."
"February 16, 2004
DRILLING COMMENCES ON FINLAND DIAMOND PROJECT
Nordic Diamonds Ltd. (the Company), announces that drilling has commenced on its 100% owned Kuopio-Kaavi Diamond Project in Finland. The project comprises the Kuopio-Kaavi Diamond Field, located on the Karelian Craton, which is also host to the world-class diamond deposits in the Archangelsk Diamond Field of Russia.
The project is located in southeast Finland near the Russian border and 350 kilometers northeast of Helsinki. Two small clusters of kimberlite pipes were discovered, in the area, during the period 1986 to 1998 by Ashton Mining of Australia. Nordic holds 100% title to 18 out of 20 kimberlites located in the region.
Previous work has established that 15 of the kimberlites currently held by Nordic contain diamonds.
Mini-bulk samples collected, by the previous operator, from Kimberlites #21 and #12, resulted in grades of 26.6cts/ht and 17.1cts/ht respectively, with a 1.126 carat diamond being recovered from Kimberlite #21.
The first kimberlite body being drill-tested is Kimberlite #21. A reinterpretation of existing technical data suggest that kimberlite #21 may possess substantial tonnage potential and a large-stone population.
Further, the data suggests that this body is not a conventional vertical carrot-shaped pipe, typical of most kimberlites, but is a irregular inclined dyke structure. This initial phase of drilling is designed to determine the structure of this kimberlite system, provide a geological insight into phase complexities and to establish micro-macro diamond distribution.
The much anticipated drill program is now under way, stated Walter Melnyk, President of Nordic. Members of our Technical Advisory Board will be consulted at each stage to assist the Company in assessing the economic viability of not only Kimberlite #21, but the other kimberlites on our project.
Once drilling of Kimberlite #21 is completed, drill testing of Kimberlites #12 and #17 will be undertaken. Plans are also being formulated for an extensive summer heavy mineral sampling program to identify new kimberlites. Compilation of available geological, geophysical and geochemical data is currently underway with a view to identifying prospective areas for detailed examination.
All work programs will be conducted under the supervision of Mr. Melnyk, P.Eng, a qualified person under NI 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS NORDIC DIAMONDS LTD."
Well 2014 was actually a good year for me NBU PDL FTO... KDR is at a loss at present but you must enter at some stage. I may reduce my exposure but the small chance of a decent kimberlite find is worth a punt. If they do get excellent news this will rocket. But you won't have a chance to get on board. I'm staying with it medium term as I am with DiamondCorp. My main holding is TCG as I see it improving over the lead up to the summer, mainly due to low oil. It will get another re rating soon.
Yes, i hate wishing the years away but 2014 has been my worst year investing since the recession of 2009. Ok i made a bomb on GKP, then SRT, BEM, SOLGOLD leading up to 2011. With steady incomes on most stocks leading into Xmas 2013....
BUT 2014 was Annus Horibilus !
I lost big time on...
GKP, NRG, Solg, Marl, Metminco, HER(f..her), AFPO, CNEL, REM, Roxi, Ariana, QPP (just frigging hopeless). EME (made and lost a bundle). And a very special reward from KDR having trebled my money in just two weeks last year but like many others in my portfolio KDR began to lose me money each time i invested?
I soon realised miners/oil/exp are absolutely impossible to grasp, i couldn't wait for any to recover as i needed to fast-track my losses into profits in another sector, so i surely did and saved my bacon with Fitbug(in late but still made a cracking profit) and MediaZest(holding for long/medium term mortgage buster?)
I did make some profits in oilies eg SOU, RRL, Gkp, Roxi, Lenigas, Andes Energia, EME but only by deft trading on the quick 'in-out' system. Holding for the 'inevitable' good news on the rest was my downfall and the losses escalated.
No mention of the release on the KDR website. I found this in an app I have.
Basically they have found an unknown extension to the Havukkasuo kimberlite body....Could be intresting but I'm not getting too excited yet.
Hi all! This is my first post on this board. I just love diamonds... Don't you! I liked the look of the bombed out SP and the new news on the licences. Worth a punt at current price. I hold just £1200 of shares... So if all goes "Bits up" I should survive. It's definitely very speculative but now and again they are worth tagging into a small portfolio.
I sujested on Tuesday (at LSE chat) when share price firstly droped under 1.10p that it could be the turning poin. I based it on charts and RNS about sending samples to laboratory (after 6 weeks we could expect that some basic info) - I bought some punt and I am happy with things happen here. I bought today some more because I expect nice, therd leg up on Monday.
Now who just joined the crew at Conroy Gold? Or was it Karelian? Or Both. With previous experience in DIAMONDIFEROUS Finland!!!!
Quote- "a mine goes right here"
Big Quote-"This is the place where Karelian Diamond Resources (later Karelian) from Dublin Ireland plans an open pit mine"
Kevo, Deatnu/Teno/Tana, Utsjoki. This is the place where Karelian Diamond Resources (later Karelian) from Dublin Ireland plans an open pit mine. The river is Ohcejohka (Finnish: Utsjoki). A Sami heritage site, a nationally valued landscape area, and the most important daughter river of the most important wild salmon river of Europe. On top of the hill begins Kevo Strict Nature Reserve a Natura 2000 area and an area excluded from people due to its flora and fauna. Finnish Safety and Chemicals Agency (Tukes) has granted Karelian a research permit to explore diamond mining that extends into the Kevo Strict Nature Reserve.
This land is at the heart of the Sami. The mine would destroy the ten thousand year old livelihood of salmon fishing, severely weaken reindeer herding possibilities and destroy landscape and natural values irreversibly. There is a reason the state of Finland hasnt signed the ILO Convention No. 169. The convention would grant rights to the Sami indigenous people to their land and give them power in matters that affect their future.
Mining industry is the Nokia of the future. These are the actual words by our standing president Mr. Sauli Niinistö (Taloussanomat / Kaleva: in Finnish). It seems to be the consensus amongst our political leaders. The reality is different. Almost all (if not all) of the current mines in Finland balance between living and dying floating and going belly up. The most constant product from Finnish mining industry are the applications to exceed their toxic waste water allowance into the nature. Extremely poor managerial skills and technology failures are a routine in mining a strong contrast to the overoptimistic promises of green technology mining that label every single new mining plan in Finland.
A mine in Ohcejohka river valley would be extremely destructive. The landscape carves out into this valley from all over the fell plateaus around it. No matter where the waste water pools would be established the water would eventually pour into Ohcejohka. There is no place to dump the waste rock except the river valley where the river runs. Or the Kevo Strict Nature Area. A significant reindeer calving area is just a rock throw away. Kevo Strict Nature reserve is adjacent to the mining area. To top it all: the iconic Kevo canyon is 3 kilometers away from the diamond research site.
The State of Finland Refuses to Ratify ILO 169 in Favor of Short Term Investments
If ILO Convention No. 169 was signed by the state of Finland, the Sami would have their say in matters such as mining in Samiland. Vast majority of the inhabitants in Utsjoki municipality are Sami. Ratification of ILO Convention No. 169 would almost certainly mean the end of mining business in northernmost Finland. It is either pure nature or poisoned nature. From up here the choice would seem logical - almost all of the local income comes from unpolluted nature and tourism. The state of Finland has chosen to overlook these needs against better judgement. It drives towards low premium low skill exploitative short term economy.
Quote under photo= "2km to the planned mine"
Sami people have lived through a period of strong Finnish colonization from 1695 until 20th century. The Finnish Lutheran Church has officially apologized (Finnish Broadcasting Company: news) the violations of human rights of that period. These violations were part of the Finnish state coordinated Finlandization. The King of Norway has apologized Norwegian colonization of Sami in Norway (The Associated Press story) and Norway has ratified ILO Convention No. 169 improving Sami rights to their land and water.
Never stated the sale was going ahead. Posted there would be one of two scenarios.
"Once the 10 tonne sampling is done one of two scenarios.
Rio buy out KDR then JV with ALROSA or vice versa.
Effectively Rio Tinto and ALROSA will control the Karelian both sides of the border between them."
Then posted a post from another site by another poster. Clue in the title about my view. Rearrange Smell Carp.
"From advfn. Smell carp
thecatman1966 - 18 Jun 2014 - 17:02 - 3307 of 3308 - 0
The End is Near! It looks like it's going to be Alrosa who will be buying out KDR. They have made an offer but KDR haven't accepted it yet. Probably holding out for more money. RIO will be compensated as part of the deal. It's finally happening!
Many AIM stocks are ramped for years and idle promises made by the bod that prove fruitless. I have long since been wary of many of these mining/oil/pharma stocks that 'appear' just to keep raising funds year in and year out with updates that really are only dressed up to keep investors piling in more dough, yet see a stagnating sp after initially flying off into orbit, giving us a taster of things to come. But always the sp drops back and in the last five years of trying to find the 'perfect' miner, none have achieved much at all, except another round of updates....with more funding to keep the ball rolling and the money-go-round continues.
So i opted out.....and stuck most of my investments into one precious gem.....a down to earth little stock, a rare commodity these days?
A bit different from your post stating it was being sold Hitch. A bit contradictory to state the sale was going ahead and then state nothing is happening.....Just saying. BTW - any update on the sale. Or were you just ramping?
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.