This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.
Here is a sample of this item:
by Will Purcell
The diamond and specialty minerals stocks box score for Thursday was a ho-hum 50-64-146. The TSX Venture Exchange lost four points to 758 while polished diamond prices were flat. Matt Manson's Stornoway Diamond Corp. (SWY) lost one cent to 77 cents on 394,000 shares. There is no news but the company continues mining diamonds at Renard, in Northern Quebec.
Dermot Desmond and David Whittle's Mountain Province Diamonds Inc. (MPVD) lost six cents to $4.77 on 138,000 shares. The company revealed its second quarter results after the close Wednesday and the bottom line appeared pleasant, or at least acceptable, with a profit of $7.5-million for the first full quarter of production at the Gahcho Kue mine, 250 kilometres northeast of Yellowknife in the Northwest Territories. Unfortunately, things are rarely as they appear at first glance.
Mountain Province reported $27.6-million in revenue for the quarter, thanks to the sale of 215,000 carats of diamonds. That works out to $128.60 per carat, or $98 (U.S.) per carat. That represents just the diamonds sold in the company's June sale, and even then, 7,000 of the carats sold in June will be accounted for in the third quarter. Those diamonds were of lower quality since they sold for roughly $200,000 (U.S.), perhaps $30 (U.S.) per carat.
The remainder is available to Stockwatch subscribers.
© 2017 Canjex Publishing Ltd. All rights reserved.
With the appointment of Evans to the helm of DDC, the company is a defacto debeers group entity, held in trust by the WAshington group. Unless Rio steps in with a bid, I think the class action against directors for not acting in the best interest of shareholders will ultimately have legs.