Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Is Benny Steinmetz controlling Koidu Holdings or it is DMW?
I read SL Article last week claiming, that “The government's approval of the development of Tongo Diamond Fields by Steinmetz through a tender process that included 11 potential foreign investors” and further: “The licence, which was awarded to Koidu Holdings, in which Steinmetz has a controlling stake and full management control, is valid for two years and covers an area of 88km'. Toronto-listed DiamondWorks holds the balance of ownership.
Steinmetz already operates Koidu, and has three other exploration licences in Upper Sewa, Middle Sewa and Matemu.”
This is NOT what DMW NR on Tongo licence was about.
DMW NR claimed that DMW is the one who holds 40% controlling stake and full management control in Koidu Holdings. We were told, that BSG (controlled by Stainmetz) holds 25% and we knew, that before KH’s was created Stainmetz got just some unspecified interest in Magma Group which owned 50% fo Koidu.
Now, if we read the recent Well Purcell’s Article on DMW we well find some interesting segment which is telling us that:
“DiamondWorks will hold a 40-per-cent share in the Tongo project. Magma Diamond Resources will own a 35-per-cent slice, with BSG Resources owning the remaining one-quarter share. Benny Steinmetz's BSG is the largest shareholder of Magma,”
It states that Magma owns “35% slice” and “BSG Resources owning remaining one-quarter” However, it also states that “Beny Stainmetz’s BSG is the largest shareholder of Magma”
So, it looks like BSG as separate entity with 25% of direct interest in KH’s holds the controlling interest (more than 17,5% in KH’s) in Magma as well.
If this is the case, than Benny Stainmetz is the one who holds a minimum 48% interest (25% direct and perhaps indirect 18%) in KH’s - has a controlling stake and full management control over 40% of DMW.
It is hard to believe, that this is the truth, but if it is . . . than I’m sure, it will be awfully startling and discomforting to all DMW shareholders.
It should be clarified as soon as possible. Otherwise, the recent SL Article dated Apr.06 at: http://allafrica.com/stories/200404060191.html may be considered as credible.
Regards TA
DMW future is brighter than ever!
The Kono district has been Sierra Leone’s most prolific diamond producing area with about 10 million carats having been mined within a 2.5 km radius of Koidu village. The Tongo Fields kimberlites are among the richest in the world. Grades in the alluvial gravels are exceptionally high, and large stones are common. The world’s third largest gem-diamond, The Star of Sierra Leone, weighing 969.8 carats, and the sixth largest gem-diamond, The Woyle, weighing 770 carats, were found in this area. DMW is in the very hart of that resource.
It was stated that “DiamondWorks remaining the largest shareholder and having received a consideration of US$4 million for facilitation of the expansion arrangements” and that “the equity partners in KH are required to immediately begin funding, in proportion to their shareholding in KH, the simultaneous fast track evaluation and development of all diamond resource assets in Sierra Leone.”
Earlier done engineering reports as the one conducted by Mr. Stephen Lay of Mining Consultants (UK) in 1996, has confirmed the economics of the project and recommended that work begin immediately.
DMW has already assembled a management team in Sierra Leone so, work on Tong Diamond Fields should begin shortly.
Taking to consideration that Tongo Fields are just 48 kilometres of KH's Koidu mine its proper to anticipate, that KH’s will process bulk sampling material at Koidu Plant and this can begin immediately.
There is enough money to quickly complete all the necessary infrastructure and mine development in 12 months. However, some production from Tonga fields should begin soon.
I would think, that KH’s will implement a multi-phased approach but, the first goal will be to produce immediate cash flow from near-surface resources, while gathering geotechnical information to plan the underground mine at Tongo.
Regards TA
Tongo Diamond Fields are the richest diamond resourcess in Sierra Leone - 18,897,150 carats worth US$3.3 billion.
Independent Consultant Values Tongo Fields at US$3.3 Billion; 18.9 million carats at US$175/carat.
In 1996 geologist Dr. Luc Rombouts has prepared a report on the Tongo Fields fissures. Dr. Rombout's review was based upon bulk sampling and drilling carried out in the past by Sierra Leone Selection Trust (SLST), which work was summarized in a study carried out by Seltrust Engineering in the 1970's. Dr.
Rombout's report states that the Seltrust Engineering study can be used as a basis for a provisional resources estimate.
There are four known dyke zones in the Tongo Fields.
The richest grades were encountered in the Lando dyke zone. SLST bulk sampled the Lando dyke zone at 122 meter intervals and at a depth down to 10.36 meters, yielding 9,466 carats out of 1,349 cubic meters, being a grade of 2.69 carats per tonne.
Drilling was carried out over a strike length of 2,600 meters. Seltrust Engineering concluded that the Lando dyke zone contained 1.68 million carats down to a 300 meter depth at an average mining grade of 0.80 carats per tonne. Sierra Leone's alluvial diamonds are currently averaging US$200 to $300 per carat.
Assuming an average value of US$175 per carat for the Tongo diamonds, the material should have an average value of US$140 per tonne, including mining dilution over a stope width of 1 meter.
In his report, Dr. Rombouts calculated the potential diamond content of the Lando dyke zone as well as the other three dyke zones, by extrapolating the grade and width over the total potential length of the four dykes to a depth of 1,000 meters.
These calculations are based upon assumptions concerning depth and continuity of grade, and are subject to confirmation by the bulk sampling and drilling to be carried out.
The Tongo kimberlite dykes have been sampled, drilled and worked at the surface in the past. Workings never extended deeper than 15 m.
The TONGO dykes are very rich (up to 3 carats/tonne) and constitute an important high quality diamond resource. The continuity of the dykes with depth has been proven down to 100 m by drilling by SELECTION TRUST.
Over a total strike length of 14,400 m and a depth of 1,000 m the TONGO dyke system constitutes a huge diamond resource of 18,897,150 carats worth US$3.3 billion.
Small pipes are known along the LANDO dyke zone and could further increase the resource figure. Assuming a value of at least US$175/carat for the diamonds in the LANDO kimberlites and allowing for a mining dilution over a 1 m stoping width, the average value content is US$140/tonne, amongst the highest in the world.
Total operating cost should remain well below US$50/tonne
Tongo Fields alone represents a potential gross profit of at least US$1.4 billion for DMW.
Regards TA
News - new diamond licence for DMW - Tongo fields.
VANCOUVER, April 2 /CNW/ - DiamondWorks Ltd ("the Company") is pleased to
announce that Koidu Holdings SA ("KH") has been awarded the exclusive licence
for the prospecting and mining of the Tongo diamond fields in Sierra Leone.
The Tongo fields are located in the Kenema district of the Eastern
Province of Sierra Leone, approximately 48 kilometres south of KH's Koidu
mine. The license area comprises approximately 89 square kilometers with four
known parallel kimberlite dyke zones transversing the licence area. The dyke
zones contain a number of known small kimberlite pipes or blows.
Alluvial diamonds were discovered in the Tongo area in 1953 and alluvial
diamond mining since then has reportedly produced in excess of 4 million
carats from the area, the established kimberlite source of the alluvial
diamonds being the dyke zones on the Tongo fields.
KH was awarded the licence to explore for diamonds in the Tongo Fields
under an open tender held by the Sierra Leone Government. In terms of
legislation prevailing in Sierra Leone, the successful tenderer awarded the
licence is guaranteed a Mining Lease for the area upon successful completion
of an evaluation and development programme within two years.
The close proximity of existing Koidu Mine infrastructure, including its
50 ton per hour treatment plant, will facilitate the fast track evaluation and
development of the Tongo Fields, making KH uniquely capable of conducting this
programme.
In order to both ensure the obtaining of the necessary licence to the
Tongo Fields and to facilitate a rationalization of its interest in Sierra
Leone into a single vehicle which will allow the simultaneous fast track
evaluation and development potential of all the Company's Sierra Leone diamond
resource assets, DiamondWorks has introduced its remaining Sierra Leone assets
to KH and a third equity partner has been admitted to KH, BSG Resources
Limited ("BSG"). The assets introduced by DiamondWorks to KH comprise
exploration licenses held by its subsidiary, Branch Energy Ltd, in the upper
and middle Sewa and Matemu areas.
BSG have acquired a 25% interest in KH principally from Magma Diamond
Resources Limited ("Magma") in a private arrangement, with DiamondWorks and
Magma's interests reducing from 50% each to 40% and 35% respectively,
DiamondWorks remaining the largest shareholder and having received a
consideration of US$4 million for facilitation of the expansion arrangements.
James Campbell has been appointed by the parties as Executive Chairman of KH
to manage all mining and development activities in Sierra Leone. James
Campbell is a former executive director of Anglo American PLC and former
director of De Beers. The equity partners in KH are required to immediately
begin funding, in proportion to their shareholding in KH, the simultaneous
fast track evaluation and development of all diamond resource assets in Sierra
Leone.
DiamondWorks Chairman, Brian Menell, in commenting on the award of the
Tongo Fields licence said:-
"The award of the Tongo Fields licence to our joint venture in Sierra
Leone is a major expression of confidence in our abilities by the Government
of Sierra Leone following the successful and fast re-development of the Koidu
Kimberlite mine, which is now in production. Pooling all our Sierra Leone
assets into a single vehicle with our partners in Sierra Leone and with their
considerable technical and financial resources underpinning our own, will
better serve the quickest possible bringing to account for DiamondWorks'
shareholders a return on their investment in Sierra Leone. Attempting to more
slowly do it ourselves would have resulted in a reduced ability to bring
additional mines to the production stage and would have significantly raised
our investment risk profile in Sierra Leone. This rationalization, on the back
of the award of the Tongo fields, puts under one management a considerable
diamond resource asset, one of the best available anywhere and creates synergy
to ensure a better and faster return, with lower risk to shareholders."
DiamondWorks is a mining and mineral exploration company engaged in the
acquisition, exploration, development and mining of diamond and other mineral
properties. The Company's principal mineral properties are located in Sierra
Leone, Angola and Central African Republic. The company's wholly owned
subsidiaries, Otterbea International (Proprietary) Limited and Petroplus
Africa Limited, specialize in commodities trading, the supply and sale of
crude oil and refined petroleum products and procurement and logistics for the
mining industry in Africa.
This news release contains forward-looking statements that are subject to
various risks and uncertainties. The Company's actual results could differ
materially from those anticipated in such forward-looking statements as a
result of numerous factors that may be beyond the Company's control. Forward-
looking statements are based on the expectations and opinions of the Company's
management on the date the statements are made.
For further information: please contact Rob Rainey in Johannesburg at
telephone +27 11 454-3099, Fax +27 11 454-1673, or email:
info@diamondworks.com; Hill & Knowlton: contact Boyd Neil in Toronto at
telephone +(416) 892-6624, Fax+ (416) 413-1550,
boyd.neil@hillandknowlton.ca
Hello? Is anyone reading that board?
TA
I anticipated a bit better market reaction to this News.
This is good News. It proves, that production at Koidu is well advanced and quality of diamond’s is consistent.
I’m sure that all the moneys from the PP are for specific projects and we will learn about it soon.
I would say, that with all those projects that Company got in place and New ones on the way DMW shares are still very much undervalued.
We should see our shares at $10.00+ this year.
I’m convinced that if the Zambian Government wouldn’t be so much twisted and hold to its end of the deal, our Company will enjoy grate profits and our share price may stand at $10.00 right now.
Well, without Zambia it takes a bit more time to be there but, we will be at $10 + anyway!
I took some advantage of the recent weakens ( under $3.00 ) in our share price and I added more to my position.
I expect great things from great Management.
Good luck to all
Regards TA
Koidu Diamond Mine - Second sale of pipe no. 1 production realises US$225 per carat
3/30/04
VANCOUVER, Mar 30, 2004 (Canada NewsWire via COMTEX) --
DiamondWorks Ltd. (the 'Company') is pleased to announce the results of its second sale of diamonds produced from the Koidu Kimberlite Joint Venture Project in Sierra Leone. Diamonds delivered to Freetown, Sierra Leone in early March were evaluated and sold on
March 23, 2004.
The 10,063 carat parcel realised US$225 per carat, marginally better than the first diamond parcel of 8,099 carats sold in February, 2004 for US$223 per carat.
The second diamond parcel was of similar gemstone quality as the first and, as for the first parcel, included a number of 'special'stones in the 10 to 35 carat range.
DiamondWorks is a mining and mineral exploration company engaged in the acquisition, exploration, development and mining of diamond and other mineral properties. The Company's principal mineral properties are located in Sierra Leone, Angola and Central African Republic. The company's wholly owned subsidiary, Otterbea International (Proprietary) Limited and 50% subsidiary Petroplus Africa Limited, specialize in commodities trading, the supply and sale of crude oil and refined petroleum products and procurement and logistics for the mining industry in Africa.
This news release contains forward-looking statements that are subject to various risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors that may be beyond the Company's control. Forward- looking statements are based on the expectations and opinions of the Company's management on the date the statements are made.
%SEDAR: 00002462E
VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=40702
An update on Koidu will certainly make us feel better, but I have a doubt that it will improve our share price in any significant way in the long run - it may move us closer to brake the previous high of $ 2.00
The problem is that at present time ( at least it seems to me that way) Company has no interest to see that happen. They know, that Q4 results which we should see at the end of this month are bad so, all the efforts to promote Company now, will not be fruitful.
I would think, that as a countermeasure to typical negative reaction to Q4 results we should see some of the positive news around the same time.
When I consider that Q1 2004 and all the future results for years to come, will be very positive than I could see DMW becoming more serious on getting out and spending some money on self promotion.
However, we can’t be sure that “some Company”will not put forward its Court claim against DMW as they think, that they got the legal rights and title to Koidu.
There maybe other sorts of things that can go wrong as it was with Zambia, but so far everything looks good.
Regards TA
The Post (Lusaka)
January 5, 2004
Posted to the web January 5, 2004
Noel Sichalwe
Lusaka
FORMER Republican vice-president Enoch Kavindele has called on George Kunda and Kaunda Lembalemba to step down and pave way for investigations into the Trans Sahara Trading (TST) oil transactions.
Kavindele yesterday said government should establish a Commission of Enquiry to carry out comprehensive investigations into crude oil importation from the time President Mwanawasa's government came to power.
"It should be clear that we need a Commission of Enquiry. And those parliamentarians who are involved in the oil 'scandal', including myself, Hon. Kunda (Minister of Legal Affairs) and Hon. Lembalemba (Minister of Mines), should step down while the enquiry proceeds," Kavindele said.
"Let us have some transparency by way of a change from the manipulation of public perception through mud slinging. Let our government set the wheels in motion for this matter to be cleared up once and for all. And let the ACC carry out investigations that are comprehensive enough to cover the whole story of crude oil importation since the new deal came into power in December 2001.
"TST is just a part of the larger picture. For the ACC to be free to do its job properly, let a Commission of Enquiry be established with full powers to call witnesses. This is necessary because many of the players in the TST affair are in government or close to it and may be suspected, fairly or otherwise, of influencing investigations 'behind the scenes'."
Kavindele said one could never be certain but to reasonably entertain the suspicion that government's main interest in TST was to use it to obtain information concerning the oil dealings of the previous administration.
"Once the information was delivered, TST was discarded and the contract of supply restored to Total, who had been Zambia's oil importation 'partners' during much of the Chiluba period," Kavindele said. "I wrote to the President inquiring about his decision and he responded that Total were a 'better devil' than TST."
Kavindele said the tendency to discard people after they have served their purposes had become a hallmark of President Mwanawasa's rule.
"I have served him well and been thrown out like so much garbage, as has Emmanuel Kasonde," Kavindele said.
"The 'old deal' MMD that put Mr. Mwanawasa in power has generally been neglected in favour of returning prodigal sons who campaigned actively against the MMD and Mwanawasa in 2001, but whom the President now seems to regard as soul mates."
Article on TST oil supply to Zambia.
http://allafrica.com/stories/200401020172.html
Lembalemba Denies Links in Awarding Oil Contract to TST
The Post (Lusaka)
January 1, 2004
Posted to the web January 2, 2004
Speedwell Mupuchi
Lusaka
KAUNDA Lembalemba yesterday denied any involvement in the awarding of oil supply contracts to Trans Sahara Trading (TST) in 2002.
And TST director Teta Vundamina in a statement yesterday said there was nothing corrupt about the awarding of 90,000 metric tonnes of crude oil supply contract to his company.
Briefing the press yesterday, mines minister Lembalemba who was then Minister of Energy and Water Development said the ministerial tender committee chaired by legal affairs minister George Kunda presided over the awarding of two contracts to TST.
He said he was aware of only three oil procurement contracts awarded while he was energy minister.
Lembalemba's statement comes in the wake of media reports that indicated himself, former vice-president Enoch Kavindele and former minister of finance Emmanuel Kasonde were being investigated by the Anti Corruption Commission (ACC) for their involvement in the TST deal.
Lembalemba said the first consignment of crude oil was awarded to Indeni and TST (90, 000 metric tonnes each) by a full cabinet meeting.
He explained that a tender to pick a long time supplier of crude oil was then floated through his ministry and that he personally suggested that the ACC be invited to be part of the evaluation team to ensure that the tender process was transparent.
He said no bidder was, however, successful.
"The ministerial tender committee chaired by the minister of legal affairs, Honourable George Kunda, where I am not a member evaluated another tender, again no one was successful. They then awarded TST to bring in another consignment. My ministry was just informed of their decision," Lembalemba said.
"The ministerial tender committee awarded another consignment to TST to coincide with the 150 days notice and as I stated earlier on, I was not part of that ministerial tender committee."
Lembalemba said the disputed consignment of 450 metric tonnes awarded to TST was handled by Kavindele and that he was not party to it at all.
He said had nothing to do with procurement of oil and never sat with anybody to discuss oil procurement.
He also denied any dealings with Kasonde and that he never engaged him (Lembalemba) in any of the contracts the Ministry of Finance entered into with any bank or individual.
Lembalemba said he had no power to award any contracts and wondered where the corrupt practice was.
He said after the contracts were awarded, all he did was request those given contracts to reduce pump prices and that he also insisted on standardisation of pump prices throughout the country as was the case in neighbouring countries.
He complained that he was being treated like a criminal in his own country.
And Vundamina yesterday explained that at the end of the Total contract sometime in February/March 2002, government in order to prevent a possible shortage of petroleum products on the market decided to give one-off 90,000 metric tonnes each of supply contracts toTotal and TST.
He said the measure was taken to ensure there were sufficient feedstocks while crude oil tender which was floated was being processed.
"About the same time TST had just concluded signing the supply contracts/agreements with Indeni, Tazama, ZNOC (Zambia National Oil Company) and ZANACO (Zambia National Commercial Bank)," he explained.
"These contracts were purely normal commercial arrangements among corporate entities. The awarding of the 90,000 metric tonnes was not done at the State House meeting which was held on July 14, 2002."
Vundamina said TST was awarded the contract at the end of March 2002 but was confirmed on April 25, 2002 through a letter signed by energy permanent secretary.
He said the meeting at State House was called to find out why TST was not able to import the crude oil into the country.
"One of the problems cited was that Indeni could only process TST's crude oil at the begining of October 2002. this was obviously unacceptable as there was no good reason for such a long delay," he said.
Vundamina said the other matter discussed at State House was the raising of processing fees from
US $24 to US $26.50 per metric tonne of crude oil.
He explained that the meeting ended with TST being requested to bring their one off 90, 000 metric tonnes within 20 days.
"Thereafter in October 2002, TST were given 150 days notice and awarded three more shipments totalling 270 metric tonnes to conclude the contracts.
Kavindele on Sunday said President Mwanawasa called for a meeting at State House also attended by representatives from TST, Indeni, Kasonde, Lembalemba,Secretary to the Cabinet Leslie Mbula and other government officials and gave authority to TST to import into the country crude oil.
He said President Mwanawasa actually threatened to invoke emergency powers on Indeni if TST was not given a contract to supply crude oil.
News on Malawi is very significant. It shows that Company is able to find new business opportunity and execute their plan exactly as was intended.
Now, everyone is aware that Petroplus business with Malawi is very real and there is no doubt that this Company is able to deliver the same or even better deals with other Countries.
As for $ value the Malawi Contract is very lucrative.
Petroplus will be delivering approximately 22,000 metric tonnes of petroleum products per month.
In terms of legislated mechanisms for oil distribution in Malawi, Petroplus will receive a margin of up to US$85 per ton for oil products supplied under this license.
This Contract will earn for DMW US$10,5 million in 2004 or (on the base of 80 million shares outstanding) US$ 0.13 per share
We must remember that this Contract is for period of a no less than 12 years which is great.
Construction of the Oil Pipeline and storage facility for Malawi is other matter and I’m sure that this project will bring some additional significant income.
I suppose, that licence with Kenya will bring very significant profits as well and possibly will be better than this Contract with Malawi.
There are other Countries that DMW is holding talks with about oil business and some of it (if not all) will be fruitful.
Koidu - I would think that we should have some Update on Koidu by now.
However, it may be even better to get that Update a bit later as it gives them more time (which mean - more kimberlite to process) so, we can have more solid results.
Anyway, the results will come and I think, that it will be great results.
It really doesn’t matter if we brake the previous high of $2.00 next week or somewhere in January.
The fact is that this Company has very capable Management and this is the most important factor in any business.
It is clear to me that they are building very solid and very profitable Company which is here to stay and thrive for many years to come.
Regards TA
Malawi News!
VANCOUVER, Dec. 18 /CNW/ - DiamondWorks Ltd. (the "Company") is pleased
to advise that it has secured a revolving credit facility of a minimum US$30
million and that necessary oil and related product storage facilities have
been secured, which were preconditions to the importation of oil and petroleum
products into the Malawian market. The Company had announced on October 28,
2003 that its subsidiary had been awarded an importation licence to supply
petroleum products to Malawi.
The first deliveries of oil and petroleum products to Malawi are planned
for January 2004. The Company is currently placing an initial order for 8,000
tonnes of refined products for delivery to Malawi in January.
DiamondWorks is a mining and mineral exploration company engaged in the
acquisition, exploration, development and mining of diamond and other mineral
properties. The Company's principal mineral properties are located in Sierra
Leone, Angola and Central African Republic. The company's wholly owned
subsidiary, Otterbea International (Proprietary) Limited and 50% subsidiary
Petroplus Africa Limited, specialize in commodities trading, the supply and
sale of crude oil and refined petroleum products and procurement and logistics
for the mining industry in Africa.
This news release contains forward-looking statements that are subject to
various risks and uncertainties. The Company's actual results could differ
materially from those anticipated in such forward-looking statements as a
result of numerous factors that may be beyond the Company's control. Forward-
looking statements are based on the expectations and opinions of the Company's
management on the date the statements are made.
%SEDAR: 00002462E
For further information: please contact Rob Rainey in Johannesburg at
telephone +27-11-454-3099, Fax +27-11-454-1673 or email:
info@diamondworks.com; Hill & Knowlton: contact Boyd Neil in Toronto at
telephone 416-892-6624, Fax 416-413-1550, boyd.neil@hillandknowlton.ca
We should see some News on Koidu and Malawi today.
TA
News - PP up to 10.8 Millon @ $1.35 per Unit.
VANCOUVER, Dec. 12 /CNW/ - DiamondWorks Ltd. (the "Company") is pleased to announce that it has arranged a private placement of up to 8.0 million Units at a price of $1.35 per Unit for gross proceeds of up to $10.8 million. Each Unit will consist of one common share of the Company and one half of a common share purchase warrant. Each whole warrant entitles the holder to acquire one common share of the Company at a price of $1.80 per share for 18 months.
The issuer has retained ODL Securities Limited of London, U.K. to act as agent on a best efforts basis in connection with the private placement. The issuer has agreed to pay a cash commission of 7% of the proceeds of the private placement together with a broker's warrant entitling ODL Securities to acquire that number of common shares of the issuer which is equal to 10% of the Units placed by ODL Securities, at a price of $1.35 per common share for a term of two years.
The proceeds of the private placement will be used for general corporate purposes and working capital. The private placement is subject to the approval of the Toronto Stock Exchange.
/For further information: please contact: Rob Rainey in Johannesburg at telephone +27-11-454-3099, Fax +27-11-454-1673 or e-mail: info(at)diamondworks.co.za/
© Canada Newswire Ltd.
Martin, I must make correction to my response.
I said “gold producers in SA can’t lose unless they where already in vary bad shape when the gold was much lower and the Rand lost in its value 25-30% in relation to US$.”
The proper way to say should be the opposite “gold producers in SA can’t lose unless they where already in vary bad shape when the gold was much higher and the Rand gained in value 25-30% in relation to US$.”
I apologize for that mistake.
I checked the charts and it appears that Rand gained that 25% in relation to US$ so, some gold producers must be in trouble indeed.
As for DMW - they are registered as Canadian Company listed on Toronto SE with Head Office in Vancouver and Representative Office in Johannesburg SA.
Company operates in US$ and there is no relation to SA currency in their business.
Best regards,
TA
Sorry, but I don’t know what you mean by talking about many gold mines not being profitable at the current rate exchange US$ to Rand.
Are you saying that those gold mines where profitable when the gold was way below US$ 300.00 and now at more than US$400.00 per ounce they are not?
This is impossible. When the US$ sinks, the gold price is going up and other currencies are in the better position so, gold producers in SA can’t lose unless they where already in vary bad shape when the gold was much lower and the Rand lost in its value 25-30% in relation to US$.
Anyway, what all this got to do with DMW?
DMW is producing daimons priced in US$ per carat and it has nothing to do with SA Rand.
DMW is trading in oil products which are priced in US$ and when US$ is losing strength than prices of commodities as oil or diamonds are going up in US$ but, it should cost almost the same in Euro.
As for gold . . . price is significantly higher not only in US$ but in any other currency as well.
I wouldn’t worry about DMW.
They got one of the best diamond concessions in the World where perhaps the cost of production is US$ 45.00 per carat and the value of it around US$ 300.00
Simply speaking . . . they just can lose!
Regards TA
I’m carefully monitoring political stability in Sierra Leone, Angola and other African countries.
I could say that at the present time Sierra Leone and Angola appears to be very stable. There are some great business opportunities there and many Companies are taking advantage of it.
DMW is one of the few Companies who early entered Sierra Leone and will be very successful there. There is a bunch of foreign Companies doing business in Angola as well and DMW is well positioned to start producing some diamonds in that Country.
Koidu diamonds and Oil Contracts will be very profitable to DMW and it will help to develop diamond production in other Countries.
TA
Well, I like this news.
It seems to me that so far Koidu didn’t process more than 700 tons of material - I thought that by now it should be processed ten times as much.
It’s nice to hear that in that very small numbers of carats there were a few big diamonds as well.
Large number of bigger diamonds will greatly improve the average value per carat.
It’s to bad that we didn’t hear at least the rough value of these stones but, I guess that those 3 large diamonds may be worth as much as 25-30% of all so far recovered.
At full capacity that 282 carats could be recovered in a half a day of production.
Nevertheless, when I look on the numbers and see that they moved already as much as 1 million tons of material, than I must admit, that they did gigantic work there.
Perhaps it will take a bit more time to achieve full capacity at Koidu and important is how many more people will find out that this Plant is running.
Personally I don’t think that this news will greatly affect the share price as everyone invested in DMW knows about Koidu and how good that deposit is.
All of us would like to see that share price @ $2.00 tomorrow but, those who bought already certainly are not going to do it.
To move that share price in any significant way Company must get out and promote itself and this takes time - I hope it won’t take too long.
Regards TA
Recent article from Zambian Press states that Zambia owes ABSA US $75 million which ABSA lent to TST.
It means that Zambia still didn’t pay to TST for its oil.
It will be interesting to see the outcome of this.
Here is the part of this article:
The Post (Lusaka)
Posted to the web December 1, 2000
Sata said President Mwanawasa should also explain why ABSA Bank of South Africa has refused to take over the Zambia National Commercial Bank, at least for now.
"ABSA taking over ZANACO is wishful thinking," Sata said. "Let Mwanawasa explain to the public why this is so because we know that government indirectly owes ABSA US $75 million which ABSA loaned to TST. We also know the amount of money being paid monthly as interest."
Regards TA
About 5000 tons of kimberlites should be processed at Koidu by now.
This is enough to have some data and to give us an update on early Koidu production.
However, I’m also not sure if this news will bring some share price improvement.
Right now somebody is still dumping at $1.40 and lower and the present retail shareholders have rather limited resources to buy more and not only that - most of us already bought what we really want.
There are no new people to buy shares here, because as so far Company is not advertising itself at all.
There are no interviews with DMW Management nowhere so, that people can read and noticed them.
There is no coverage of any kind on this Company but, Management still claims that they are very interested to spread theirs a new positive image around.
So far, they did nothing in that matter.
There is the possibility that Management may not care too much about the share price except that those who put their money into PP would like to see some solid profit from it.
I said many times before and I will say again that it is entirely up to Company where the share price will be!
Where there is Will . . . there is Power.
Regards TA
Marcos and russet, check your PM box at SH please.
TA
I thought about it for a while and I came to conclusion that right now it’s not in Company interest to have its shares at this very low price and I could say that it is rather a negative situation.
I must say that Company has nothing to do with pouring this cheap stock on the market but it is most likely some institutions who accumulated those shares at much lower level.
I could not picture any insider or somebody close to the Company selling @ $1.40 or lower when plenty of great News waiting ahead.
Whoever is selling those cheap shares must have no idea what kind of News is coming our way.
I’m sure that News from Koidu is very close and it will be so great that even those who are counting on good results will be amazed.
I have no doubts that we will see a good deal of big diamonds 5, 10 and more carats each and the average value of all stones maybe closer to US$ 300.00 per carat than we wish.
I should say once more that Koidu is the best and will be the most profitable mining operation among all.
There is no doubt that soon as possible Company will move to develop its other properties in Angola and CAR
.
Here is a bit of information on Angolan properties so you can see its potential.
In 1997 production of diamonds from Diamondworks' Luo Mine was at an average daily rate of almost 300 carats. Diamond production has exceeded 500 carats on several days in October, including a new one-day record of 550 carats.
In the first three months of its commercial alluvial operations at the Luo Mine Diamondworks has produced more than 23,000 carats.
The two DMW pipes in Angola Camatchia and Camagico are among the twelve largest diamond pipes in the world.
Camatchia is the largest of five pipes identified on the DiamondWorks' Luo concession in northeast Angola, and the world's tenth-largest known diamond-bearing kimberlite.
The five holes drilled by Diamondworks on Camatchia were planned to confirm the eastern boundary of the Camatchia pipe. All five holes intersected kimberlite at the surface. The deepest of the five holes was stopped in kimberlite at a depth of 108 metres.
The Camatchia pipe, located near the centre of the Luo concession, is one of the largest, undeveloped diamondiferous kimberlites in the world. Evaluation work in the early-1970s by Diamang, a former Angolan mining consortium that included De Beers as its technical advisor, indicated that the pipe has a surface area of 27.9 hectares and probable and drill-indicated diamond reserves and resources totalling approximately 13 million carats to 300 metres below the surface, with the pipe being open to below that depth. Diamang reported that approximately 50% of the 10,600 diamonds recovered from its test work on Camatchia were gem quality. DiamondWorks' initial work at Camatchia indicates that the pipe's surface area may be larger than 27.9 hectares. Diamondworks' evaluation was designed to corroborate Diamang's results and to verify the economic feasibility of an open-pit mining operation at Camatchia capable of producing at least 250,000 carats a year.
Also at the Luo concession, DiamondWorks has drilled one hole into its 20.7-hectare diamondiferous Camagico kimberlite pipe, the world's twelfth-largest known diamond pipe. The hole intersected crater facies at the surface and primary kimberlite at a depth of 107 metres. The hole was stopped in primary kimberlite at 158 metres. This hole is the first recorded intersection of primary kimberlite at Camagico, which is located on the south bank of the Luo River, four km south of the Camatchia pipe.
Diamang's earlier work on Camagico indicates that the pipe has probable diamond reserves of 730,000 carats to a depth of 100 metres. Eight percent of the diamonds were reported to be very valuable light pinks. Diamondworks' first drill hole into Camagico confirms that the pipe is open to depth and also indicates that the pipe may be considerably larger than the 20.7 hectares originally estimated by Diamang.
DiamondWorks' Luo concession also hosts three other kimberlite pipes, known as the Carambala and Lunhinga 1 and 2. Little data exists on these pipes.
Diamondworks hold’s four other key development and exploration diamond properties in Angola, including the Yetwene concession.
Only financial restraint is keeping DMW from going back to Angola.
Those tremendous resources will be developed by DMW soon as the income from oil contracts and Koidu will start to flow.
The Malawi News will hit us soon and it will be fabulous News as well.
As you all know, Company is working very hard to secure other long term contracts in few different countries and I have no doubts that some profitable long time arrangement will be made.
I didn’t mention here all the other properties in CAR or Sierra Leone which will also come to production one day but, just the short and midterm projects that this Company is getting into.
I could visualize, that in several of years this Company is producing more than a million carats of diamonds per year and the oil business is flourishing as well.
DMW is under new, very ambitious Management dedicated to quickly grow its Company to become a true leader in its field.
I will say, that for those who are invested and will stay with DMW for some time there is some gigantic profit to be made.
My conclusion is that all this cheap shares offered to us today by whoever is nothing less than good chance to buy more . . . and this is what I will do.
How about you? Are you in for more?
Regards TA
My error is:
Profit - 187,000 X US$ 220.00 = US$ 43,010,000.00
It should be:
Profit - 187,000 X US$ 230.00 = US$ 43,010,000.00
Sorry about that.
TA
Koidu is slowly ramping up to full capacity. The results are excellent - much better than anyone could expect. The average value of diamonds is US$280-290 per carat.
Beautiful stones with amazing quality - as I was told.
Diamond production from Pipe No.1 is expected to be at least 187,000 carats per year.
News release on Koidu will most likely come next week.
From what I was told I could easily estimate Company earnings from Koidu Pipe No.1 in 2004.
Value of stones - US$ 280.00 per carat
Production cost - US$ 50.00 per carat
Profit - US$ 230.00 per carat
Profit 187,000 X US$220 = US$ 43,010,000.00
50% goes to DMD = US$ 21,5 million and with the present # of shares outstanding at 69,524,848 Company earnings will be US$ 0.31 per share.
There will be some production from Pipe No.2 coming as well which will further increase Company earnings from Koidu.
Malawi - first shipment of oil products (22,000 tons) should be done in this month but, earnings may show in Q1 2004.
I estimated that DMW earnings from Malawi Contract should be US$ 0.15 per share.
Kenya - Company is ready to send one shipment of Petroleum Products right now but, prefers to wait with it a bit ( there is special reason for it ) as there is some large long term Oil Contract about to be closed.
DMW is also working on oil deals with several other Countries as Nigeria, Equatorial Guinea and more.
We should see some News on Angola as well.
There is plenty of good news ahead of us and with it the share price will go much higher.
My estimate of DMW earnings for 2004 still stands at US$ 0.60 per share but, if the Oil Contract with Kenya will be as good as the one with Malawi . . . than my estimate of 60 cents per share is to low.
With that kind of earnings per share( from long term contracts) DMW should be recognized as very strong and fast-growing Company and at that stage shareholders should see the share price at more than $10.00
However, if one day Company will decide to pay some dividends (lets say 30 - 40%) than I believe that it can reach $20 per share.
Regards TA
When I look on any other Company in the mining sector then I see that DMW is one of the kinds.
There is no company like DMW nowhere!
What I’m aiming at is that there is bunch of other Companies with no earnings whatsoever or they are losing money but, they still enjoy much better share price than DMW shareholders!
Many of those Companies own some non producing properties in Africa or South America or former Soviet Union where business climates are not better than it is in any African country where DMW is operating.
There is no excuse than, that DMW shares are so low because the Regional (African) factor is in play.
For DMW to have such a great revenue and great profits to show - with Malawi Contract in place, with Koidu ( best and most profitable) World class diamond mine in operation in stable Country of Sierra Leone, with other diamond properties in Angola and CAR, with Licence to import oil products to Kenya, with 55% interest in Kenyan ethanol fuel additive plant and other deals just around the corner and at the same time Company is at P/E 2.9 with share price CAN $1.40 is PREPOSTEROUS! It is very pathetic.
Question is what Company is doing to bring that shareholder value to reasonable level?
So far, there is nothing which will indicate that Management of these Company cares about the share price.
With that earnings and prospects we should see our share price at $5.00 right now!
It upsets me to see as so many other companies with nothing or not much to show . . . double, triple or even a quadruple theirs share prices in a matter of months but, this Company share price sink lower and stays that way without any reason . . . except PP.
I hope that there won’t be any more of PP so, the share price will go several $ up where it belongs!
Regards TA
When I look on any other Company in the mining sector then I see that DMW is one of the kinds.
There is no company like DMW nowhere!
What I’m aiming at is that there is bunch of other Companies with no earnings whatsoever or they are losing money but, they still enjoy much better share price than DMW shareholders!
Many of those Companies own some non producing properties in Africa or South America or former Soviet union where business climates are not better than it is in any African country where DMW is operating.
There is no excuse than, that DMW shares are so low because the Regional (African) factor is in play.
For DMW to have such a great revenue and great profits to show - with Malawi Contract in place, with Koidu ( best and most profitable) World class diamond mine in operation in stable Country of Sierra Leone, with other diamond properties in Angola and CAR, with Licence to import oil products to Kenya, with 55% interest in Kenyan ethanol fuel additive plant and other deals just around the corner and at the same time Company is at P/E 2.9 with share price CAN $1.40 is PREPOSTEROUS! It is very pathetic.
Question is what Company is doing to bring that shareholder value to reasonable level?
So far, there is nothing which will indicate that Management of these Company cares about the share price.
With that earnings and prospects we should see our share price at $5.00 right now!
It upsets me to see as so many other companies with nothing or not much to show . . . double, triple or even a quadruple theirs share prices in a matter of months but, this Company share price sink lower and stays that way without any reason . . . except PP.
I hope that there won’t be any more of PP so, the share price will go several $ up where it belongs!
Regards TA
Marcos, there is News Letter article on DMW on Stockwatch.
I'm not a member of Stockwatch so, I have no access to full text but, I’m sure that some of you do and can bring all that text to this site.
TA
DiamondWorks Ltd (2)
Symbol DMW
Shares Issued 65,884,465
Close 2003-11-10 C$ 1.24
Recent Sedar Documents
This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.
Here is a sample of this item:
DiamondWorks remembers its dead, in silence
2003-11-11 13:00 ET - Street Wire
by Will Purcell
Antonio Teixeira's DiamondWorks is posting strong profits from its oil supply business and is now reviving one of its diamond projects that should help the company's bottom line further still. The new profits come just five years after a pre-dawn attack at the company's Yetwene mine left several DiamondWorks employees dead and missing, despite what was supposed to be a ceasefire in Angola's long-standing civil war. For a time, DiamondWorks seemed destined to suffer the same fate as its unfortunate employees, but things have been much rosier of late for the company and its shareholders, as a series of recent deals have proven quite profitable. Sadly, things have been decidedly dismal for the families of the four employees who remain unaccounted for to this day. Although the authorities in three countries and the families now concede that the men are dead, their survivors are still waiting for a final settlement in accordance with the terms of the employment contracts, exactly five years after the strike on Yetwene.
The remainder is available to Stockwatch subscribers.
If you would like to give the Stockwatch system a try, click here to register. Free 30 day trial subscriptions are available.
Compare to the latest engineering report on Sedar the price per carat at Koidu is more likely closer to US$ 270.00
One tone of kimberlites contains 0.671 carat and at minimum price of US$ 240.00/ct is worth US$ 161.00. Cost of production at Koidu is estimated around US$ 40 per tone of kimberlites.
In effect the clear profit from diamonds recovered from one ton of kimberlites should be above US$ 100.00
However, taking to account that the average value of diamonds is closer to US$ 270.00/ct. but, the cost of production is still the same my conclusion is that the profit from diamonds in one tone of kimberlites is at least US$ 110.00 or we could say that one tone of kimberlites will bring this kind of profit.
Soon we should have results from the first parcel of diamonds than we will know what really is there.
TA
This estimate you got from Sedar is old historical data on the average carat content at Koidu as a whole.
The latest data from the engineering report (on Sedar) shows the ct/ t of kimberlites in Pipe No.1 and Pipe No.2 as 0.671ct/t and 0.276ct/t respectively.
Below is opinion of the experts on value of diamonds at Koidu - from Sedar.
Martyn Mariott indicated that the estimated worth of the diamonds in 1996 was
approximately $300 per carat and that he was hesitant to put a value on the diamonds in
current terms without having the goods on the table. He was, however, prepared to make
an “informed guess” that, if the production was worth $300 in 1996, it should now be worth
somewhere in the range of $270 to $240 per carat.
Using Venmyn’s price escalation data, projection of the August 1979 valuation indicates a
present value in the range $220 to $250 per carat, but with a fairly wide range of
uncertainty. Thus, a price of $240 per carat is considered to be realistic.
And below is part of my old post from SH on Koidu.
As I recall some of the information released by DMW on Koidu they planed to take 100 000 tons of bulk sample from pipe #1. It supposed to be done in four months November - February.
But what I’m aiming at is the estimate of DMW earnings and the profit from Koidu in the first year of the operation where DMW will keep 50% income from this project.
In the engineering report on Sedar there is latest information on the content of diamonds in pipe #1 as 0.671ct/t.
We know, that Koidu will process at least 300,000 tons of kimberlites a year so, at 0.671ct/t they should recover more than 201,000 carats of diamonds. The average price per carat is estimated at around US $ 230.
201,000 X US $ 230.00 = US $ 46,230,000.00
In the first year of the operation at Koidu DMW Share of revenue will be US $ 23,115,000.00
As the profit goes it will be at least US 110 per ton of kimberlites so, the total profit from Koidu will be 300,000 X US $110 = US $ 33,000,000.00 and DMW will get US $ 16,500,000.00
When we consider the latest PP of 3,640,383 shares and the same amount of warrants which will be exercised plus the 65,884,464 shares we are having right now DMW will have 71,165,230 shares and if this is not going to change in the next 12 months the earnings per share from Koidu operation must be at least US $ 0.23 per share in the first year.
In 2004 there will be pipe #2 in production so, the profit may increase. However, 20% of profits will go to the Sierra Leone Government and the Local business group.
Sierra Leone Government expects that at one point the Koidu operation should exceed production of 300,000 carats of diamonds per year.
I think, that with pipe #2 ( in a latest estimate - 0.276 ct/t ) in production it is easily achievable.
Finally DMW will have steady stream of revenue for many years to come and this is very important for financial community to see.
When DMW gets Malawi it should be multi year contract to supply this country with Petroleum Products and some profits from the Pipeline Project. This is very important to DMW and I’’m sure that they went the extra mile to secure that financing.
As for delivery of Petroleum Products to Kenya I was told that there will be ““very good news coming””and . . . there is also other good news from Kenya on a slightly different front
.
It is possible that they have some positive developments in other African country as well. However, we must wait and see as all this good news will slowly trickle on us thought this and the next month.
How this will affect the share price? It will largely depend on the company itself.
If they care to get some better media coverage, advertise themselves better to financial community and so on then the share price will go much faster and higher than otherwise.
We mostly own ours shares already so, if we not going to buy any more than others must step in and do it for us but, there must be some reason for others to buy
.
The best way to spur interest in the company with good profits and jack the share price to great extends is to pay dividends to shareholders. However, I would not count for dividends from DMW for long time as they plan to search for more diamonds, develop new mines, go deeper into petroleum business by acquisition etc. and all this activity requires lots of money and will eat all the profits for many years to come but, this is just my opinion and I can be wrong.
Regards TA
Well, I said that overall this is good news.
What I specifically don’t like is that Company is holding trading licence for more than four months and didn’t sell any oil products to this market. After all, the licence was granted so, Company can trade in oil products and I did expect that at least one shipment should be done by now.
I think, that “testing of the parameters of the Kenyan market” shouldn’t disrupt any oil products sales itself and I don’t believe that for the whole four months there was no way to sell any oil products to Kenya. Many companies with licences are doing that all the time.
However, if there was no way to sell anything in four months time so, . . . it looks bad.
They did mention two shipments delivered 17 months ago, they said they got the licence so, I would say that it would be OK to inform us what kind of sales we could see in Kenya.
Three months ago Company informed us that Delivery of Petroleum Products to Malawi and Kenya will begin “in the matter of few weeks.”
We just have a News on Malawi that we have the trading licence and there is some possibility that delivery of Petroleum Products will begin in this month (which is very good) but, with Kenya (as so far) we just holding licence there.
TA
It is good news overall but, not good enough to move our share price up.
There is no immediate revenue from it and there is not even a rough estimate what kind of profit we may see in the future.
There is one piece of information I like the best “After the importation by Petroplus of two trial shipments of oil products in April and May under the auspices of NOCK, Petroplus was awarded its own oil importation and trading licence for Kenya in June 2003.”
Company holds importation and trading licence for more than four months but, nothing was sold yet.
Company said that “The two trial shipments of oil products totaling approximately 34,000 tonnes facilitated the testing of the parameters of the Kenyan market and the efficacy of the oil marketing model being developed for the Kenyan market. The test results were positive and supported the decision by DiamondWorks to acquire control through Spectre of the Kisumu ethanol plant.
We could see that so far (after more than a year) the only result from the “testing of the parameters of the Kenyan market” was just acquiring control of the Kisumu ethanol plant.
Nothing is said about further delivery of oil products to Kenya ( no hint at all) and . . . I don’t like it! .
TA
News from Canada NewsWire
DiamondWorks acquires 55% interest in Kenyan ethanol fuel additive plant
13:19 EST Thursday, November 06, 2003
VANCOUVER, Nov. 6 /CNW/ - DiamondWorks Ltd (the "Company") is pleased to announce that it has acquired a 55% controlling interest in Kenyan company Spectre International Limited ("Spectre") for US$2.0 million. Spectre owns the Kisumu ethanol plant situated on Lake Victoria in the Western Highlands of Kenya and close to the border of Uganda. The plant is under construction and Phase I is expected to be completed by end May 2004. Sale of ethanol fuel additive, potable alcohol and related by products is expected to begin shortly thereafter.
When Phase I is completed, the Kisumu ethanol plant will have the capacity to supply up to 60,000 litres of fuel additive per day and at full production expected by June 2005, it will have capacity to produce up to 240,000 litres per day for sale to the refining industry in the region, including other countries such as Uganda. This will substantially reduce regional dependence on importation of these important fuel additives.
This acquisition is another step forward in the Company's expansion strategy into the Kenyan mid-stream oil market. DiamondWorks' 50% subsidiary Petroplus Africa Limited ("Petroplus") had previously concluded a memorandum of understanding with the National Oil Company of Kenya ("NOCK") and a hospitality agreement with NOCK, Kenya Petroleum Refining Ltd., Kenya Pipeline Company Ltd. and NOCK Nairobi Terminal. These arrangements were entered into for purposes of enabling Petroplus' entry into the Kenyan market and to facilitate its ability to undertake a review of the mid-stream oil industry in Kenya aimed at its modernisation and development. After the importation by Petroplus of two trial shipments of oil products in April and May under the auspices of NOCK, Petroplus was awarded its own oil importation and trading licence for Kenya in June 2003.
The two trial shipments of oil products totalling approximately 34,000 tonnes facilitated the testing of the parameters of the Kenyan market and the efficacy of the oil marketing model being developed for the Kenyan market. The test results were positive and supported the decision by DiamondWorks to acquire control through Spectre of the Kisumu ethanol plant.
A portion of the US$2.0 million purchase price has been used to settle all debt in Spectre. Spectre is now in a position to source the debt funding -- secured against its currently unencumbered assets -- required to bring the plant to full production by June 2005. Off-take arrangements for the plant's product are readily available in support of any funding it will require. The products capable of production from this plant are increasingly in demand internationally.
Cash flow to DiamondWorks from this strategic investment is expected to begin within a few months of anticipated first sales of ethanol in mid 2004.
DiamondWorks is a mining and mineral exploration company engaged in the acquisition, exploration, development and mining of diamond and other mineral properties. The Company's principal mineral properties are located in Sierra Leone, Angola and Central African Republic. The company's wholly owned subsidiary, Otterbea International (Proprietary) Limited and 50% subsidiary Petroplus Africa Limited, specialize in commodities trading, the supply and sale of crude oil and refined petroleum products and procurement and logistics for the mining industry in Africa.
This news release contains forward-looking statements that are subject to various risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors that may be beyond the Company's control. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made.
/For further information: please contact Rob Rainey (in Johannesburg), Telephone: +27 11 454-3099, Fax: +27 11 454-1673, email: info(at)diamondworks.com; Boyd Neil, Hill & Knowlton Canada, Telephone: (416) 892-6624, Fax: (416) 413-1550, email: boyd.neil(at)hillandknowlton.ca/
© Canada Newswire Ltd.
Increased volume may indicate that some good News is coming.
It is a bit early for Koidu bulk sample results as I expect those about two weeks from now.
It must be some News on the oil business front.
DMW share price should closed higher today.
TA
I agree with your opinion on DMW join ventures with PI and Magma. There will be many benefits from this. However, I would like PI to be a bit stronger company then most people think it is.
I run over all the available information on this Company as, financial statements, project management etc. and I see that (for some time already) this Company is in financial trouble.
In the last few years they are losing money.
Management is trying to remedy a difficult situation by selling some really good assets and from what I see, they just maybe able to break even no sooner than two or two three quarters from now.
Today PI share price closed at EUR 6.32
Here is just some basic information on PI from the semi-annual 2003:
High net debt to equity.
Net sales up 34% to EUR. 3,245 million
Gross profit up 25.5%
Net loss(after special write-down) EUR. 42.4 million
Net loss of EUR. 2.4 million before special write-down
Net loss per share of EUR 1.43 ( after special write-down)
EUR 0.08 loss before special write-down.
Koidu - deal with Magma is good but, in my opinion Magma is getting a bit more then they deserve. I would think, that 60% for DMW and 40% for Magma will be fair deal.
However, it maybe more to this deal than it seems to be as Magma insider will buy all the production from Koidu “right on the spot” . . . no questions asked.
As for DMW coming back to the Zambian oil market it can happen when there will be Court ruling in the favor of DMW or some amicable solution but, I wouldn’t count on friendliness of Zambian Government. President of this country Levy Mwanawasa is very stubborn and a weird person. As I follow Zambian politics for long time I could see that he makes many unpredictable and rather stupid decisions and he is very arrogant man who is not willing to admit to any of his mistakes
Here is some information on Zambian election:
chief of state: President Levy MWANAWASA (since 2 January 2002); Vice President Nevers MUMBA (since May 2003); note - the president is both the chief of state and head of government
cabinet: Cabinet appointed by the president from among the members of the National Assembly
elections: president elected by popular vote for a five-year term; election last held 27 December 2001 (next to be held NA December 2006); vice president appointed by the president
election results: Levy MWANAWASA elected president; percent of vote - Levy MWANAWASA 29%, Anderson MAZOKA 27%, Christon TEMBO 13%, Tilyenji KAUNDA 10%, Godfrey MIYANDA 8%, Benjamin MWILA 5%, Michael SATA 3%, other 5%
Regards TA
I think, that soon as some money start streaming to DMW again, they will be able to go ahead with development of Pipe No.2 and start diamond production in fiscal 2004.
Operation in Pipe No.2 should generate production of 80,000 carats per year at value of 13 - 14 million US$.
Production from those two pipes should stand annually at US$ 61,5 million in diamonds value and 40% of that (US$ 24,6 million) will go to DMW. By that time Company will have (my guess) 75 million shares so the earnings from Koidu alone should be US$ 0.32 per share anually.
Earnings from Petroleum delivery to Malawi should bring in total US$ 21 million and 50% (10,5 million) will go to DMW.
PAI will pay (from they part of earnings) to DMW some money as part of that US$ 25 million for purchasing of 50% interest in PA and most likely it will be a good part of that what they earn - perhaps 3 - 4 million.
Malawi should generate income of US$14 million per year or US$ 0.19 per share for many years to come.
In that case DMW income from those two long term revenue generating sources will be US$ 0.51 per share annually.
I have no doubts that there will be some good contracts with other countries which will bring the 2004 earnings to more than US$ 0.60 per share.
As for Zambia . . . I wouldn’t count on Company coming back with oil business to that Country under the present Government but, if there will be some legal solution as the case is in Courts or some other way to settle this so, company rights will be recognized - than I would say that it is possible.
Regards TA
Hi Marcos,
I got your massage and I will try to post here from time to time.
I’m new to this board so, I don’t know how many people regularly are reading that DMW side but, I hope that there is more than few?
As for Q3 financial results I’m not surprise to see them near zero.
This is very temporary situation and Q4 will a bit better. However, it is very hard to say right now what the earnings in Q4 maybe.
There will be some income from Koidu but not too big. Koidu may give us this month (last in Q4) around 15,000 carats of diamonds at US$ 240.00 per carat which is US$ 3,6 million and 50% of it will be for DMW but, we don’t know how much of that production will be registered in Q4.
The same thing goes for Petroleum Products delivered to Malawi - delivery may happen in November but, the money may come in Q1 2004.
A good thing is that just from Koidu and Malawi the earnings in Q1 2004 should be minimum US$ 0.12 per share and everything else as possible contract with Kenya or some other country will be on top of it.
DMW future is very good and that very low share price will be gone fairly soon.
Few weeks ago when I spoke with DMW PR I asked many questions. One of the answers I got was “very cautious” prediction where the stock price will be at the end of March. I was told that it should be between $3.50 and $6.00.
When I asked what, they think about my estimate of DMW earnings for 2004 at US$ 0.60 per share or more there was a short answer “there is no problem with that at all.”
I was also told that they will be back in Zambia with oil delivery at the end of Q1 2004 or sooner. However, as I know the Zambian situation with great details I have difficulties to see how this is possible.
Well, I have to end my writing for now.
Regards TA