Diamondcorp Forum

I hear there are lot of people wanting to buy Diamonds in London!

Basically what DCP have done is pre sold those 360,000 Carats for $22 a carat. You may look at that and say that is well under the current average price ($63), but its cash in the bank, without it the mine would not be able to get in aposition to get to fll production.

That is a great deal, to give away 360000 carats of future production for cash now is a pretty sweet move in my opinion, no interest payments to meet, no dilution. No doubt we will pay them back an awful lot more than the cash we are recieving, but you cannot spend future production of diamonds.

Cornishknocker: thanks for that reassurance.

The mine has a relatively low electrical demand - its maximum demand is 4MVA. If there was likely to be power shortages in the area (Which doesn't appear to be the case - the site is 200KM from Joburg), it could easily be managed with generators.

I have a big investment in DCP and believe they handled the recent strike with great skill and the management team showed again they are on the ball. I am still concerned that the strikers may be back nearer the time of production. however, my bigger immediate concern is the looming energy crisis in SA. already J'Burg is in a state of rolling outages. Anybody got views on this or know of any reason why my concerns are without purpose?

Don't be too hasty to buy just yett. Further to drop over December because they're not going back to work until January at the earliest. Wont drop below 6, but at below 6.25 buy,buy,buy!!!! GLA.

I can tell you now- they won't to back to work in 2014. AMCU have deep pockets and will have a lot of popular local support against a foreign owned mainly white managed company. I've got 35k invested here, so it gives me no great pleasure to prophecy this. GLA.

The company are beter letting this drag out longer in my opinion, when the unioinised miners realise that they aren't getting anything out of it and only losing money, they will lose faith in the union. Bending over to the unions demands would open the company up to massive future problems.

RE: hmm: don't bet on the SA Government stepping in. The unions in SA today are a bit like the unions were here in the 1970s, PLUS there is an added ingredient where it is almost entirely blacks on strike against mainly white- owned companies. Zumba and his cronies are quite happy to sit back for now and let the unrest fester. With the loss of Mandela, a vital part of the glue holding the country together has sadly gone and there are whispers of a Zimbabwe like scenario further along the line. Don't get me wrong, I think it is potentially a great company and the management have so far done a great job. All I say is let's not discard the fact that industrial unrest is the biggest cloud hanging over this company and the management team have to tread a very canny line. IMHO.