Guitarsolo
04 Nov 2015
Re: PM Speaking Good to see PM getting out there and banging the diamond drum. This conference is a fortnight after the financing deadline (18th Nov) so I hope that will all be done and dusted by then. Until financing is delivered the share price will remain weak and PRG exposed. I am sure PM knows this and will have a deal done before 18th Nov, hopefully on favourable terms given the diamondiferous assets that PRG has to exploit.Roll on 2016 and some actual mining for gems!Guitarsolo
jthal
03 Nov 2015
PM Speaking [link]
Guitarsolo
03 Nov 2015
Re: article Hi Luciano, "size" do you mean that diamonds are intrinsically small for their value and therefore you can store a lot of wealth in a small volume? If so, yes, I can see the point but gold is not exactly voluminous for its value (say a gold bar is worth $5000+). Anyway, the point I was trying to make is that I think it would take quite a lot for the powers that be to start to consider diamonds as a store of wealth.....an investment for sure (like art, wine, cars, certain property etc). Back to PRG, I know we have until 18th November for the finance to be arranged/announced - but I would rather it happened sooner than later. I apologise but I can't recall the penalty for not repaying the loan and announcing the finance by 18th Nov. The Mothae arrangement was dependent on financing so that could be in jeopardy. I have faith in Philip Manduca as he has earned that since he came in. I just wouldn't want to see Johnny-Come-Lately vultures stealing too much of this company for themselves over the long standing shareholders. Perhaps even a rights issue would be better than giving away too much just to complete funding. But PM has said he will do everything he can to protect existing SHs and I for one believe him. Guitarsolo - trying to be patient......
luciano uk
02 Nov 2015
Re: article Diamond may not be a storage of wealth like gold, but what about the size factor?With gold we get carats as percentage of the stuff, but with diamond beside clarity and purity, we get size.This is why for me diamond and all gems, do represent the ultimate storage of wealth.
Guitarsolo
19 Oct 2015
Re: article Hello Scholomo, Better now than when production starts! (I haven't read the review I hasten to add)I am not sure I buy into PM's view that diamonds will become a store currency of wealth like gold is. However, I am sure that demand for jewellery quality stones will only increase as the growing middle class men are conned into spending a fortune on a small clear stone worth as much as a car just to impress/please their beloved! It's a one-off (you hope) so you can bring yourself to do it.....We have someone at de Beers to thank for that I think (someone came up with the brilliant idea of using high-quality diamonds for an engagement ring/ present). There will always be an article saying diamonds/gold/metals/coffee are going up, and then another saying they'll go down. Journos have to fill their time and copy with something I guess. There's a lot of gold already held in store in places (but not the BoE so much, thanks Gordon Brown!) and gold has fewer commercial uses. Coffee can grow every year....Diamonds on the other hand are a finite resource on this earth and yet the demand is likely to keep going up. That's my hope anyway.We seem to be in a crucial period of securing the funding to get to production without it either tying the company in knots of debt, or diluting the shareholders too much. If PM can sort this out and get us to full production early next year then we should start to fly as all the evidence shows there should be diamonds there, PRG has top-rate equipment to find them and all the benefits of last-mover with respect to building the necessary infrastructure. But PRG has to get to production first. I'd bet on PM with the hand he has to play. Guitarsolo
scholomo
16 Oct 2015
article There is a very bearish article in the Times on diamonds.Not a good time for this to be released
Guitarsolo
15 Oct 2015
Was the loan repaid in time? From the last RNS:"In addition the Company has agreed an extension to the short term �500,000 loan facility to 18 November 2015 in order for the proposed Acrux funding package to be executed. If Paragon repays the loan after the 14 October 2015 then it will issue the provider a further 3,571,428 detachable call warrants with a strike price of 7 pence per share."There was no RNS to say whether the loan was repaid before 14th October. It doesn't mean to say it wasn't but, given the provision for the call warrants to be issued if the deadline was missed (which could affect the number of shares in issue etc), I would presume they would have to issue an update to the stock market. It is logical therefore that the deadline was missed and the call warrants now exist but at a strike price of 7p. What that does to a share price currently under 5p I don't know. But if the price does ever rise you would need to remember that someone has 3.5m warrants. my maths that would represent a potential dilution of 1.26%. Frustrating!Is PM struggling to get the funding he wants?Guitarsolo - it's unhealthy to follow AIM shares too closely I find!
Norris107
08 Oct 2015
Re: Red Letter day for PMG: PM delivers! My take on this latest news is also positive & encouraging. I'm a long term holder, topped up this week and it's good to see a few other buys coming through - especially the big 1.88 mil today! Time will tell as to how well we will do re the actual quantities and quality of the diamonds mined but i have ever increasing confidence in PRG's management, direction and their preparations for future high-tech production - all exciting stuff IMOGLA
HPC Follower
08 Oct 2015
Re: Red Letter day for PMG: PM delivers! There is a lot going on in Lesotho right now to grow diamond gem production, to add to the outputs from Kao (Storm Mountain) and Letseng (GEMD); i.e. the two PRG kimberlites (Lemphane & Mothae) and the much larger Liquobong (FDI) main pipe.There will be scope for synergies to save costs and improve profits, whether sharing mains electricity supplies (Storm Mountain, for Kao, has bought into the facilities funded initially by FDI - and just gone live); sharing experience on technologies which are or could be deployed (e.g. X-ray machine of different types); leveraging benefication processes to cut/finish gem stones before sale into the general market place.The key for all these companies will be the demand for gem stones (which is still forecast to be growing faster than the supply side can over the next 20 years), the prices attainable and the volume of good/valuable gem stones which can be found and released "unbroken".The "economy-of-scale" will be with FDI for a while as they work through the top few layers of the Liquobong Main Pipe; also with PRG until they need to dig deeper.The successful companies will have good production levels and gem stone recoveries, quickly pay off their debt, manage their costs carefully, start paying dividends to shareholders and invest some money each year to increase the returns per diamond sold. If insufficient diamonds of good quality/size/colour are found and costs escalate, debt demands could also escalate, more equity might have to be released to meet debt obligations and companies could fail.I have money invested in FDI, PRG & GEMD... so would be very pleased if Lesotho (which does seem to be working in good partnership with the diamond miners) and these companies (importantly including their shareholders) do very well through these joint ventures over the next 10 or so years.
Guitarsolo
06 Oct 2015
Re: Red Letter day for PMG: PM delivers! Thanks PB, Various BBs seem to attract the "trader" type. All wannabe alpha-males thinking they can analyse a stock in a heartbeat, know more than others and have a bigger wedge than everyone else! I work in the City most of the time (in reinsurance rather than the stock markets or investing houses) but I occasionally frequent the same watering holes. You can see and hear them all then, thinking there is worth to being able to "trade". I am more of an investor. I want PM to take my money and use it to build the infrastructure of two parallel mines. I want a return, of course. But I am prepared to wait for it. As for the current share price, I think it reflects typical AIM risk but horribly undervalues the prospects of PRG. I would also differentiate diamonds from the rest of the beleaguered mining sector. Whereas copper, zinc, aluminium etc all rely on a continuous demand for construction of something, diamonds are used for one off purchases (engagement rings), or a lucky spouse might get some earrings or a necklace to match! Either way, the massive and growing middle classes will continue to buy them. Demand will likely remain strong but supply is reducing, nice for PRG in a few years' time. I am not sure I yet buy into PM's view as a store of wealth in the same way as gold, but I am happy to be proved wrong. I do wish there was a little more chat on here, especially when there are RNSs around. However, I prefer silence to the inane drivel on LSE most of the time ("you're stupid" "no YOUR stupid" "no...YOU'RE ............" spelling error deliberate!). That said, funding etc is important but not too much will happen to PRG's share price until the early production mining reports are issued. Guitarsolo
Pharma Brown
06 Oct 2015
Re: Red Letter day for PMG: PM delivers! Hi Guitar,Agree 100% with your opinion on the 'chat' on LSE at the moment! There seems a lot of ignorance around, and misunderstanding. Few seem to understand what a 'term sheet....non-binding' followed by 'legal due diligence' actually represents:- the definitive agreement between the negotiating parties which is then passed to the legal boffins with the instructions to draw up a legally-binding contract for us to sign. Then the 'debate' as to whether or not the funding has been taken into account in the current share price!.....all they need to do is look at the chart to see where the price was in late 2014 before ever the purchase of Mothae was on the cards. Then the readiness with which some bloggers accept the claims of another to have insider information...........clearly a person who is seeking to influence the buying/selling of others by appearing to have credibility. I'm finding it all terribly frustrating. The 'insider person' I prefer to listen to is Philip Manduca.I'm very content to sit on my holding, reading all the clauses of RNS news, and analysing what PM is saying against published facts. Personally I'm gaining confidence with every step that we are fortunate to have in him someone who is capable of building a business; unlike so many exploratory mining companies led by geologists, who after all can be hired by company-builders. PRG, with its far-sighted business plan of becoming a vertically integrated diamond house, and fronted by a highly experienced fund manager who has amassed a personal fortune and is heavily invested in PRG, does not typify the AIM exploratory minnows sector! PM is already in advanced negotiations over funding of Stage 2; and I note the timing has been brought forward a little. It is fascinating and exciting watching this story unfold.Hopefully the solicitors will produce their contract later this week (and collect their big fees!) and the accompanying RNS will give us a fuller picture of the next steps towards the commencement of mining, at least at Mothae, in Q1 2016. Whilst the share price is reflective of the sector as a whole, this remains IMHO a buying opportunity. As the business develops and the high-value diamonds start appearing, the overdue rerating will eventually happen.Best wishes,PB.
Guitarsolo
02 Oct 2015
Re: Red Letter day for PMG: PM delivers! Thanks Pharma B. Much more activity on the LSE board, but much of the comment is pointless sniping and ego puffing!Anyway, excellent update from PRG and PM. The funding deal looks better than most miners would expect at this stage of their development and PM continues to hold his promise to protect existing shareholders from too much dilution. 2016 will be an exciting year for the company. I'm happy to wait for it to arrive but continue to believe that PRG represents an excellent investment for the risky part of someone's wedge. GLA. Guitarsolo
Pharma Brown
02 Oct 2015
Red Letter day for PMG: PM delivers! If anyone is wondering why it is so quiet on this bb, the chat is all on LSE.[link] a brilliant funding deal this is, especially given this is an AIM company in the beleaguered Mining sector. Well done Philip Manduca! He's been 'talking the talk' for some time, and now he's 'walking the walk'. Even a $2m discount off the price of Mothae! Good luck all holders. This is one to be long in and to hold for the long term.
Pharma Brown
16 Sep 2015
Re: Mothae - Positive Technical Study I think we are due an interim report any time now. Maybe that will present Philip with an opportunity to update us on any buy-back activity. If there is an element of equity issue associated with the funding package when announced, then he will be able to offset the dilution element of equity issue with the 'concentration' (is that the term, opposite of 'dilution'?!!) provided through any buying-back. For me, the bottom line is that acquiring Mothae effectively doubles the company's size: though the market may not like the thought of ANY dilution, I for one would be very happy to get away with a modest amount on the basis that it is better to have, say, 90% of my initial holding in a company now twice the size, than 100% of my holding in the half-sized original. We shall soon know what those figures are, and can then move ahead towards what will be a very exciting and transformational next year of activities.Guitar - I'm currently only significantly into 2 shares, this one and MARL. Wish I had more cash.....both PRG and MARL have world-class reserves and are hugely undervalued. This week has seen a few pundits declaring a bottom to the bear market, if they are right and sentiment soon returns then the most undervalued stocks will become the first to benefit from renewed investor confidence. Fingers crossed for that best-case scenario; but happy to sit and wait it out for a couple of years whatever the overall picture.Good luck all.PB.
Guitarsolo
16 Sep 2015
Mothae - Positive Technical Study I read with interest the RNS yesterday of the technical study at Mothae. I'm no geologist so much of the technical stuff went over my head. However, it seems to me that Stephen Grimmer and co were pleasantly surprised by the technical data at Mothae. That's certainly good news and would suggest that, once mining commences, we should see a good supply of diamonds and crucially a number of the larger stones. That was the good part. The bad part was an indication (or revelation) that the financing is not so far progressed as I had thought. Is this Philip Manduca playing one potential lender off against another to get the best deal? Or is financing proving to be more of a problem than anticipated? Hmmmm. Anyway, the RNS says that there should be another update by the end of September (re the financing). If that all falls into place, and the funding is at a good price, then there may only be another couple of weeks before the price starts to rise. As we get towards the end of the year there will be (i) funding in place with minimal dilution to shareholders (I hope), (ii) all the infrastructure and kit ready to go, (iii) mining commencing at Lemphane and Mothae in Q1 with now better than expected technical data. That should, and I emphasise should, get the price moving. I am surprised it hasn't already but this may reflect the funding uncertainties. Guitarsolo - holding, not buying, but only because I already have enough sunk into this not because I don't believe in the potential here.
