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Diamonds & Specialty Minerals Summary for July 17, 2014

2014-07-17 19:52 ET - Market Summary

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by Will Purcell

The diamond and specialty minerals stocks box score for Thursday was a lethargic 49-49-165. The TSX Venture Exchange fell three points to 1,005 while diamond prices held steady. Ken MacNeill and George Read's Shore Gold Inc. (SGF) jumped 3.5 cents to 28.5 cents on 572,000 shares. Shore has not had any news of late but the stock is slowly climbing, much like it has several times since it first dipped below 25 cents in 2012. Optimists -- and they are in great supply around Shore Gold -- gleefully note the stock has been climbing steadily since setting an all-time low of 11.5 cents in December. Richard Clark's RB Energy Inc. (RBI) lost six cents to 49 cents on 4.67 million shares. RB Energy is far off its 2013 high of $2.88, thanks to big cost overruns and delays at its lithium mine near Val d'Or. Those problems forced Peter Secker to merge his struggling Canada Lithium Corp. with Mr. Clark's cash-rich Sirocco Mining Inc. early this year to avoid bankruptcy. Mr. Clark, CEO, expects the mine to have completed ramp-up to full production by late this year but in the meantime, RB Energy's cash has been dwindling fast.

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Will wrt to Dominion Diamond

any thoughts on the possible relation of the four million shares to the 4M share short position? They were placed somewhere around here +/-

Relatively good news seems to be piling up to no effect with the shorts. Does anyone else see difficulty in covering that volume with further good news on Ekati and the Jay pipe plans?

Posted by Borson at 2014-07-18 11:28

I noticed that, but I cannot fathom any connection between the two.

Mathematically, a short seller would "cast" negative votes, since they don't actually own shares, they owe them.

Short sellers "borrow" stock from those that own shares, usually without the owners ever knowing that.

The buyers of the short shares would presumably be happy, since they have just become shareholders.

Regards,

Will

Posted by Will Purcell at 2014-07-18 17:42


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