Ok, the Positives as I see them -
1. Africa - sure it's been ugly and may well be again, but in the two countries in which dmw operates, and in neighbouring countries, a period of relative peace seems to be establishing itself. Here's a peace deal in the Congo now - cnn.com
The cnn Africa page - cnn.com - has a lot of articles but many more, in greater detail, are available from their customnews service - customnews.cnn.com
In Angola, UNITA has made dmw promises that it will not attack the mines, and both Yetwene and Luo have been working for some time now without reported incidents. Looks to me like the situation is stabilising.
2. Yes, that's a lot of paper out, 178.5mil ... there may very well come a rollback. I hear third-hand that it is 'not under consideration at this time', but then companies always say that right up until the rollback announcement, don't they ... well, so what - in the end the market will price the stock on its fundamentals, after the tanking pressure of the 1-for-10 or whatever. Definitely something to keep an eye on, though. What an opportunity for a prospective acquiror to catch the company in the rollback-induced trough of its share price.
3. Friedland is only a minority shareholder, less than 10%. Not even a director.
4. Branch/Hansard et al - the company maintains that the connection is overblown in the press, and makes some statements that surprised even myself - diamondworks.com
I have followed dmw in the past and had, according to that page, some misconceptions on the matter. Anyway, to mine diamonds in Africa you are going to need some muscle - call it a 'security force', call it a 'private army', whatever ... you need something, the states don't have the money to pay for the policing to protect you. It's unethical only if abused, imho, and i see no evidence of abuse. It does, however, increase the mining costs, so the more peace in the area the better.
5. The chart - no momo, for sure ... but some of us are bottom feeders. Trends do turn. Picking the point at which they do is the trick. By the time it has momo the bottom pickers have taken the best of the gains. Anyway, looks to me like it's due for another little bump there - chart.canada-stockwatch.com
6. Diamond theft - I don't know what to think about this. We have no way of knowing just what goes on. Diamonds are quite small, quite valuable. It would be good to see the company make clear statements addressing anti-theft measures. Also, an intelligent parasite doesn't kill its host, there's always that.
7. Will the JCI people find it in their interest to act in the best interests of the minority shareholders? ... Well of course at the moment they are a minority shareholder too, they only have 29% so far. Voting control of the fully diluted, though, so enough to swing a major decision after warrant exercise. The warrants are all priced higher than this, though - they start at .23 with the majority .30 or more, if memory serves. And one major decision coming up may very well be, imho, a deal for the paper of a new company ... either that or dmw will be used as the vehicle to acquire others ... either way i think something is being assembled here that could be a powerhouse of a mining outfit in Africa, and maybe a good deal with an RSA black empowerment group behind it.
8. The First Mary wall, if still there, at least moved up a penny -g-
It may be for a financing or debt conversion. The company likely needs cash in the short term, since the mines haven't been operating for long and the costs will have been high under the situation of the past few months. The new plant at Yetwene will have cost something. On 31/07/99 there are payments due to Mariposa and Northstar of $888,888 ... Austfin gets paid by 'an assignment of the Company's share of sales proceeds from diamonds produced' ... no payment schedule on Urija's 5mil in notes appears in the AIF.
So they may need cash but it may not be much, and if positive cash flow can be achieved soon further dilution may be minimal or none. Not such a big 'if', with the mines working.
9. Thread's not so dead - Forthright showed up -g- .. he called jdx, mpz, and kwe by the way, all good ones imho though i only hold the jdx at the moment.
10. Reporting - this one reports more professionally and in better detail than most of its size. Check out the sedars. The AIF is a big file but has a lot of meat. It hasn't been an entirely happy story but they do tell it in detail - sedar.com
11. The properties - Yetwene, Luo, Luarica, Camatchia, Koidu .. some rich ground here, hardly touched so far. Big upside on known carats alone once the bandidos are dealt with. Lots of room for new discoveries as well once there's the luxury of positive cash flow. Info on the properties in the recent annual report on sedar and on the website - diamondworks.com
12. The price - I remember dmw above two dollars for a long time ... i got some yesterday for sixteen and a half cents. That's a market cap of 178.5 x .165 = $29.45mil Cdn ... i'll get some today too. |
