DMI.v/DMIFF C$1.71 Diamcor operates in South A
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Posted On: 11/15/2013 10:17:56 AM
DMI.v/DMIFF C$1.71
Diamcor operates in South Africa. They bought a claim from DeBeers. DeBeers operates the world's third largest diamond mine next door to Diamcor's mine. It's literally a few hundred feet away. DeBeers was forced to develop or sell the project because of South African rules. They chose to sell because the total production is small compared to their big mine.
DeBeers explored the project and think that a glacial event scraped the top 15 feet of the gravel from their mine over to the Diamcor location. So the diamonds are the same quality and in about the same frequency as their big mine. Additionally, it is shallow and requires only loaders to scrap the top 15 feet to "mine" the diamonds.
Diamcor has spent the last couple of years building the mine. They got funding from DeBeers and Tiffany's so didn't have to dilute. 35million shares out, 41.5 FD, and total market cap about $71 million.
Diamcor has been fine tuning their new plant and expects to go to 24/7 production in early 2014. They project eps of .20 to.40 in 2014 and .40 to .80eps in 2015.
To further establish credibility, Diamcor has been processing batches and found one 91 carat stone that they sold for $818K. They have sold a total of 14,000 carats so far in their limited processing. They project moving to 24/7 will result in production of 10,000carats/month by 12/14. Further increases to 20,000+ carats/month should occur in 24-36months from initiation of 24/7 processing.
Capex spending is basically already done and no further dilutive financing should be necessary.
Diamcor says that there have been very few diamond mines built, especially with the tight financing atmosphere since 2008 and supplies are tight. Demand is rising in low single digits. Asia is a significant source of demand as the wealth accumulation there has increased demand.
Low supply increases, rising demand and a new mine coming into full production. Should be a very good medium term buy and mold.
http://www.diamcormining.com/about/
Diamcor operates in South Africa. They bought a claim from DeBeers. DeBeers operates the world's third largest diamond mine next door to Diamcor's mine. It's literally a few hundred feet away. DeBeers was forced to develop or sell the project because of South African rules. They chose to sell because the total production is small compared to their big mine.
DeBeers explored the project and think that a glacial event scraped the top 15 feet of the gravel from their mine over to the Diamcor location. So the diamonds are the same quality and in about the same frequency as their big mine. Additionally, it is shallow and requires only loaders to scrap the top 15 feet to "mine" the diamonds.
Diamcor has spent the last couple of years building the mine. They got funding from DeBeers and Tiffany's so didn't have to dilute. 35million shares out, 41.5 FD, and total market cap about $71 million.
Diamcor has been fine tuning their new plant and expects to go to 24/7 production in early 2014. They project eps of .20 to.40 in 2014 and .40 to .80eps in 2015.
To further establish credibility, Diamcor has been processing batches and found one 91 carat stone that they sold for $818K. They have sold a total of 14,000 carats so far in their limited processing. They project moving to 24/7 will result in production of 10,000carats/month by 12/14. Further increases to 20,000+ carats/month should occur in 24-36months from initiation of 24/7 processing.
Capex spending is basically already done and no further dilutive financing should be necessary.
Diamcor says that there have been very few diamond mines built, especially with the tight financing atmosphere since 2008 and supplies are tight. Demand is rising in low single digits. Asia is a significant source of demand as the wealth accumulation there has increased demand.
Low supply increases, rising demand and a new mine coming into full production. Should be a very good medium term buy and mold.
http://www.diamcormining.com/about/
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