Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : DIAMONDWORKS DMW.v -- Ignore unavailable to you. Want to Upgrade?

To: russet who wrote (334)	7/29/1999 6:38:00 PM
From: marcos	Read Replies (1) \| Respond to of 413

Koidu is a small part of why i'm in dmw ... thought that positive news there on top of a greatly improved situation in Angola might help to jumpstart some market interest. I'm a little surprised at not hearing anything about it at all. Mind you, i've never called the company ... probably should. Judging from previous quarters, it was reasonable to expect 2Q99 this week, so we should see them soon. There may be references there to Koidu, maybe to negotiations ongoing if nothing else. I say dmw mines Koidu before very long - they had a significant investment made there, and are politically astute, imho, in a place where that really counts. But you're right - the meat is in Angola for now. Yetwene, Luo, Camatchia. And cash flow - how close are they to positive cash flow? - that's the question. I figure the scarey period is over, and the market just hasn't recognised that yet. I just got spammed by the Financial Times of London, with a free introductory offer to their search facility [normally $1.50US/search] ... i'll try it out later, and post the url if it's any good ... cheers [edit] - here it is - ft.com ... they say to pass it on, i haven't used it yet, don't know anything about it ... it's a pretty fair paper, though. [edit] - or maybe this one - ft.com

To: russet who wrote (334)	8/1/1999 5:00:00 PM
From: marcos	Respond to of 413

You mention the annual report - the other way to get it, and much quicker, is to download it in Adobe form from the sedars - 16 April 1999 1963k pdf - sedar.com Although i prefer the 2540k pdf Annual Information Form filed 27 May - less pictures, more background detail. The zoomable maps and comments in the AR are interesting, though - there's a reference to Catoca on page 6 - that's Ashton of Oz, right? Putting out a million carats a year, and just down the road. Quote from Walsham, page 6 - "The alluvial deposits at our Luo mine have a limited life. The kimberlite resources must be developed so we can grow and generate a satisfactory return for our shareholders. As we already have an established operation at Luo, we do not have to wait for all the problems in Angola to be fully resolved before starting production from our kimberlite deposits. The incremental costs of developing the Camatchia pipe are justifiable. The pipe is exposed at surface and the existing diamond recovery plant can be easily modified to process the kim-berlite ores. It is reasonable to suppose that Camatchia can soon produce upwards of 400,000 carats of good-quality diamonds a year. One of the unique aspects of the diamond potential of Angola is that many of the kimberlites tend to be very large and exposed at surface, making for excellent mining economics. Development of Camatchia is a key to our improved operating performance and short-term growth. As a comparison, the nearby Catoca pipe, which another company began mining in 1997, now produces more than one million carats per year. Our other kimberlite projects in Africa — Camagico, Koidu and Kao — are expected to be the foundation for longer-term growth of the company. All have significant resources of high-quality stones." Four hundred thousand carats times two hundred or so US annually - wouldn't that be nice, a gross from Camatchia alone of eighty millions US per year. Haven't seen a capital cost estimate or time schedule to achieve that, though. Once cash flow turns positive, which should be soon - in fact it may have passed that point already - it would seem reasonable that dmw puts the first of its net gains into Camatchia, eh. It's not like they have to save up to pay income tax - there are big back losses to cushion against that. It's been two weeks since more cheap paper got issued - there may not be any more coming. Time will tell, but i doubt that more comes out, since positive cash flow has alleviated or soon will alleviate the need. So here we are with ~200mil out, ~300mil f/d - 102.46mil warrants priced .17-.35 sitting there ominously just above the share price. Which for sure scares people off. Never mind the natural share price discount for African assets compared to those in countries perceived to be 'stable' - whatever that means to anybody who knows how high is the stack of environmental bumpf Aber has to deal with, and the hard cash dollars they have to pay to deal with it - those existing warrants and options, along with the suspicion that more may yet be coming, are damaging the perception of the possibility of improvement in the current market cap of ~45milCdn based on ~300mil f/d, even though around 19milCdn cash would come in on exercise, and the assets are humongous. Put them in the NWT and they're worth a couple of billions. So later i'll do a post on share structure, warrants, etc .... then one on assets ... i think you buy a carat of diamonds in the ground a whole lot cheaper when buying dmw paper at current prices than any NWT paper, and considerably cheaper than Rex or Southernera paper, even .... and while a discount is reasonable, current conditions should be reducing it, but aren't yet - the discount has become quite excessive imho ...... cheers.

To: russet who wrote (334)	8/4/1999 5:59:00 AM
From: marcos	Respond to of 413

russett, i just discovered the financials are on sedar and have been since Friday - sedar.com The notes are in the pdf called 'Other' ... i'd been watching CNW for a release, never thought to check sedar .... have only scanned them so far ... of course they only go up to 30 May. Apparently the Van office is telling people that July production was over 13,000 carats, and the last sales averaged ~212US$/ct ... around 190US to dmw after fees and commissions. So that's a gross of roughly 3.7mil Cdn$ to the company in July alone. Just a guess, but i bet that's well over operating expenses, 168-man security force and all. She's through the dip and starting to climb, maybe. At some point the share price should follow. Piece on US/Africa - stratfor.com .. which i got from this which doesn't seem to work any more - worldnews.about.com .. have to go through the home page - home.about.com - for several other pieces .. like this one - ustreas.gov The US is starting to notice Africa. Maybe black people do count, after all.