swooped
24 Apr 2015
Email from Philip Manduca EMAIL FROM PHILIP MANDUCAA nice update indeed.---------- ---------- --Dear XXXGood to hear from you.We have been very busy as a management group over the last few weeks, successfully so, and consistent with my previous correspondence to you and in RNS publications where I have stated our business strategy and ambitions.Investors need to determine why they have bought shares in a company – for a short term trade driven by a single piece of news or on valuation grounds driven by the underling story.We cannot provide short term “fixes” for those that need news every day or week. Investors in AIM may need to mature more in that respect.They are buying growth stories in smaller companies that can take some time to develop. But valuations in advance of successful growth often represent extraordinary value.There is always the FX market available for short term adrenalin.What we can (and must) do is advise shareholders if there is anything occurring that changes the investment criteria adversely, or indeed positively.We expect to do so positively as soon as possible.Management should react to critical events as well as anticipate them. Sometimes, when extraordinarily positive opportunities arise that can significantly improve the dynamics of a business, a board of directors needs to make adjustments to the existing strategy in the best interest of the company over any timeframe.Concluding those opportunities can often take a little longer than expected, especially in Africa, but also in places like Canada.I cannot be more specific, for the very reasons that you may be able to guess, and I expect to provide more detail imminently.But as I look at the current and prospective situation both with what we are building in Paragon and externally in the macroeconomic and geopolitical world and within the diamond sector itself, I am going to be disappointed if Paragon’s share price is not reflective of a market capitalisation in excess of £30 mln by year end.The diamond industry is changing for the better now. The opaqueness of pricing and valuation is dissipating in the dark streets and small offices of Antwerp, as new markets in Dubai, Panama, Singapore, HK and New York push Antwerp the same way that Amsterdam went before it. Consumers and investors want more transparency on pricing and producers can offer them this better than wholesalers.We know what the mine gate price is.Paragon intends to expand its reach as fast as possible, and hopefully faster than other producers, in continuing to secure more diamond resource which is becoming scarcer, extending its business reach through Dubai and elsewhere into expanding our own distribution and optimising the sales point of each and every stone to maximise revenue per stone. Providing buy back guarantees and declaring fixed profit margins from the mine gate price will encourage investors and consumers to purchase more confidently.I believe, as you know, that gold has become an electronic banking instrument, and is no longer fit for purpose as a hard asset hedge against debasement, or credit crises. One can only transfer it electronically through the banking system, Even a 0.5% shift from gold holdings in private portfolios to investment grade diamonds would result in $55bln of demand for diamonds, versus the $13bln or annual production, based on $11 trillion of gold holdings in both physical and non-complex derivatives.In the meantime, investors, as opposed to traders, should decide why they invest I'm companies like Paragon. If they are seeking a diamond production company that controls costs aggressively, retains a management executive with a strong track record in building successful and profitable businesses, that invests shareholder money in resource status assets and not speculative exploration, and intends to maximise revenues by controlling it’s distribution pathways to benefit from expected rising diamond prices, especially
HPC Follower
22 Apr 2015
Re: Scholomo Probably because he/she is looking for a good entry point otherwise why would one bother to post on the board for stock of no interest.Personally, I feel PRG could do very well in the next few years, especially if the price of diamond gem stones strengthens as expected and a good quantity of larger, high quality stones are found with their usage of the latest X-ray technology.
Pharma Brown
09 Apr 2015
Scholomo Given that every single post on this board from Scholomo this year (10/3, 28/2, 19/2, 16/2, 15/2, 11,2/ 4/2, 2/2) has been negative and drawing attention to sellers, I'm wondering why he is still interested.............??
scholomo
09 Apr 2015
selling Large amount of selling going on.Investors beginning to loose faith and become very nervous.See LSE site.Slight problem is as I see it is that our man at the helm has made a rod for his own back by being on the ball with his past promises and backing them up with an RNS or a mail to Swoopey.This last delay without an announcement has investors jittery.
Pharma Brown
26 Mar 2015
Re: swooped Does anyone have a good understanding of 'closed period' rules relating to director trading? And does 'trading' cover transfers, or only buys and sells?We are expecting what has been flagged by PM as potentially game-changing news regarding a possible asset acquisition for which due diligence is currently being undertaken. Does that technically put the directors into a 'closed period' such that they cannot buy or sell since that would be deemed 'insider trading'? PM has neither bought nor sold so technically (IMHO and ignorance) has not 'traded'. He has instead 'transferred', and in such a way as to give the market a strong signal of confidence! Am I trying to read too much into this?Hmmm!
Doomsday2001
25 Mar 2015
swooped Hi swoopedI would be interested to know your take on today's events?Titanium Cap purchased 24m shares less than a month ago and now 21.5m sold, with a spread bet position taken up for the same amount.34.5% of his total position is quite a big bet At the start of the month Obtala also took out a spread bet on 13m shares or just under 5%
dyfiman
25 Mar 2015
Re: PM & holdings news Great to see the top man getting stuck in..And great to see PRG rising on the news. My screen shows a 6.40% riseand latest trade was at 6.490....... with 1,108 shares traded. what's that horriblephrase "onward and upward" ?? !!Get your purse out Mr Brown !!And best rgds.END
Pharma Brown
25 Mar 2015
Re: PM & holdings news Wow, that's some spreadbet! Best of luck to PM! That's one very confident executive chairman!!
dyfiman
25 Mar 2015
PM & holdings news Two RNS's before 2pm re.. Phil M's new holdings in Paragon.END
dyfiman
24 Mar 2015
Re: 21.5 million shares sold And a 5 million buy, taking PRG up to 6p price.Is this the time to buy a serious wedge ???Rgds
dyfiman
24 Mar 2015
21.5 million shares sold People with more insight than I have say the 21.5 mill sale is part of financial deal scenario involving Obtala and Grandinex International Corp.So no panic ??Rgds all.END
dyfiman
24 Mar 2015
what the F....k ?? Just tuned in to see that somebody has sold 21.5 million shares !!!!!!!Any observations out there ??
HPC Follower
15 Mar 2015
Re: Mothae......?? I agree that Mothae is the likely asset target (see text below from Lucara's recent news) but the costs to develop the mine are significant (c.$21m) - although possibly less for Paragon post their present mine development.Electrical power won't be given away by Firestone Diamonds (who are meeting most the capital costs), but I'm sure that Paragon will be able to use the line if they pay a fair share of the costs back to FDI.Lucara clearly want to concentrate their efforts in Botswana; but the prospects for Mothae look better if the Paragon mining facilities can be leveraged.Paragon remains a HOLD for me until we start producing diamonds and see the profit levels for the stones actually produced. FDI are making the greatest investment to mine the largest kimberlite, and is my highest stock holding, but I have also hedged my diamond positions by investing in Paragon, DCP, Lucara and STEL.
Pharma Brown
13 Mar 2015
Mothae......?? On 30th January, Swooped posted a very interesting discussion contribution here, which I have copied below. There was no further discussion at that time, but it looks to be highly relevant to this morning's exciting RNS, and now raises for discussion 'Is Mothae the potential acquisition?' I acknowledge what may go down as a great piece of inspired research from Swooped, and say no more!!Posted 30/1/2015 by Swooped, entitled 'Yes, but are we missing the point'The apparent dissapointing reaction to the share price movement on funding has been discussed elsewhere so I wanted to give my reasoning why the reaction to funding has been dissapointing, it is in my view a misunderstanding and a lack of reasearch and knowledge on behalf of both the investors and the analysts, whose coverage has been no less than abysmal, therefore I'll give my take on it as I want to raise a few points that seems to have been lost somewhere in the updates over the last few days, and in particular the comment in the email sent to me by Philip yesterday that being; "and also provide the company with an immediate commitment to fund an acquisition of a diamond resource" Other than Roomove, do people not realise the significance of this statement? The fact that Lucara Diamonds have put up for sale the Mothae diamond mine in Lesotho i.e. in our exact location and that ITGT have committed to fund our acquisition, do you guys not realise the synergy and importance such an acquisition would have to Paragon were it to come to fruition? Given that it is widely reported and a known fact that no new kimberlite pipes/mine have been discovered for over 20 years and the rarity is only getting greater, any additional mine is huge. Lucara offers the chance for Paragon to have not just one great mine but 2, imagine, both in similar geographic locations where the mining could be conducted together with all the economies of scale that go with that approach, imagine what the addition of an existing resource mine of similar size to what most believe we will have in Lemphane after Phase 1 would be, think about it two mines at different stages of production, one a proven resource, one an indicated resource, thereby potentially doubling production overnight, now think if PRG can make this acquisition in a speedy fashion we could have not one, but two mines coming on stream at the same time, wow! now that would be something. Then take this thinking further, look at the economies of scale, both in the same area, utilising the same infrastructure, i.e. roads and electrification, this is also an important aspects that I believe many have overlooked, the roads are already there; this is what I believe Philip was on about when he made a point of last mover advantage, it was not just about the gained experience, it was the fact that Paragon do not need to build main central roads only a spur of the existing central system (happily already paid for at great expense by the likes of Firestone (Liqhobong) and Gem (Letseng)) thus costs around electrification can be massively reduced by as much as I believe 80%, not to mention the huge decrease in energy costs since the decline of the oil price. These are the areas we should now be focusing on, the potential when you start to think in these terms are massive and way in excess of the bargain basement share price we see today and even greater in what my first thoughts were when I started investing in Paragon. Let’s get this discussion going, these are all important areas that I believe are being overlooked not just by these BB's but also the mainstream analysts who seem to have misunderstood the potential, when this gets out and the penny drops forget buying in in the single digits we have a great opportunity to be first mover investors in something far bigger than we first thought, let’s not lose it.
dogbawls
13 Mar 2015
RNS - Update and Financing package PARAGON DIAMONDS13 Mar 2015 07
00Paragon Diamonds LtdParagon Diamonds Limited / Index: AIM / Epic: PRG / Sector: Resources 13 March 2015 Paragon Diamonds Limited ("Paragon"or the "Company"
Update onLemphaneDiamond Projectand Placing Paragon Diamonds Limited, the AIM quoted vertically integrated diamonddevelopment company in Lesotho, Africa, is pleased to provide a positive updateon the development of its Lemphane kimberlite Pipe Project (`Lemphane' or `theProject') located in Lesotho, Africa, and in respect to a proposed acquisitionof a diamond resource in Africa. If successful the proposed acquisition willsignificantly enhance the asset base of the Company and its valuation ahead ofStage I production at Lemphane in Q2 2015.Highlights * Stage I production at Lemphane remains on track to commence in Q2 2015 * + Lemphane is located among a cluster of kimberlites known for producing exceptionally large, high value diamonds + Extraction of approximately 1 million tonnes of kimberlite over an 18 month to two year period + Targeting recovery of over 100 diamonds larger than 9 carats, including stones over 100 carats in size * Potential to significantly reduce future operating costs at Lemphane- discussions remain on-going with contractors with regards to the electrification of the mining operations * �130,000 raised in new equity to fund critical due diligence on a prospective diamond mine acquisition with validated resource in Africa, supported by International Triangle General Trading LLC ("ITGT" financing the acquisition as opposed to equity dilution Paragon's Chairman Philip Falzon Sant Manduca said:"We continue to work aggressively to add value for shareholders. Discussions toreduce our energy costs at Lemphane by tapping in to the electrification whichis now being established will be a significant contributor to added netrevenues. In addition, we are seeking a new acquisition target which has akimberlite diamond resource in Africa, and have been performing due diligenceto validate our strategy for development. We can achieve significant economiesof scale by combining management teams at both Lemphane and the potentialacquisition mine and through the ordering of relevant plant equipment and useof sub-contractors should our efforts at an acquisition be successful, we wouldlook to develop both mines simultaneously. At this stage Paragon is one of anumber of potential acquirers and there is no guarantee that the Company willbe successful. If we do not make an immediate acquisition, nothing changes andwe remain on schedule for Q2 2015 production at Lemphane."We have completed a small fund raise to isolate and thus segregate the costsassociated with a potential acquisition of a resource, rather than utilisedevelopment capital to acquire other assets. If an acquisition is successful itshould significantly re-rate the company, significantly escalate production andrevenue numbers and of course one would hope be reflected in a higher shareprice. As a consequence, I support this fundraise from existing shareholders tofinance the rigorous due diligence involved to support an acquisition, which isnot inconsistent with my stated ambition to keep share dilution to a minimum.Should the acquisition be successful, ITGT will finance it on agreeable terms,and at a lower rate of interest, rather than via further share issuance."Paragon Diamonds is a company in the right place at the right time and Ifirmly believe with the right strategy to develop itself into a holisticdiamond company controlling the sourcing and supply of
