Proactiveinvestors recommends
Additional Information
Market: AIM
Sector: General Mining - Diamonds & Gemstones
EPIC: DCP
Latest Price: 4.25p  (-2.97% Descending)
52-week High: 6.38p
52-week Low: 3.38p
Market Cap: 11.77M
1 year chart More charts
digital-look imported chart image
Deal DCP Tax Free*
*subject to change and depends on individual circumstances.
1 day chart More charts
digital-look imported chart image
Advertisement
Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
DiamondCorp
www.diamondcorp.plc.uk
Deal DiamondCorp Tax Free* Losses can exceed
your initial deposit *subject to change and depends on individual circumstances.

DiamondCorp plc is an emerging diamond producer focused on maximising shareholder value through the development of high margin diamond production assets. The company is incorporated in the UK and the highly prospective diamondiferous regions of South Africa and Botswana are its chosen areas of operation.

Full DiamondCorp profile here
Pdf

DiamondCorp shares should rise once IDC funding is finalised - analysts

June 13 2012, 11:29am 'The IDC deal is making DiamondCorp an enticing investment opportunity while diamond demand appears comparatively robust compared to the overall commodity market' - Ocean Equities

There has been more bullish broker comment on DiamondCorp (LON:DCP) following yesterday’s operational update on its flagship Lace mine in South Africa, when it reported that diamond recoveries have been well ahead of expectations.

Particular focus is on the project finance from the Industrial Development Corporation of South Africa (IDC) which agreed a funding term sheet with the company last month.

The IDC agreed to grant DiamondCorp’s 74 per cent-owned subsidiary Lace Diamond Mines a loan of 280 million Rand, approximately US$33.6 million, subject to due diligence.

In reaction to yesterday’s update, Fairfax analyst John Meyer had already said he believes there should be considerable upside to the current share price level once the loan agreement is finalised.

The funding, expected to become available early in the third quarter, will enable the company to rapidly restart underground development at Lace.

Ocean Equities analyst Christopher Welch said in a note today that while the update was positive, tailings production at the mine is a side show to the main event, and that he eagerly awaits news of the funding deal’s completion.

“This deal will bring the Lace mine back into production with minimal dilution to DiamondCorp shareholders, making DiamondCorp an enticing investment opportunity while diamond demand appears comparatively robust compared to the overall commodity market,” said Welch.

Over at Northland Capital, Dr Ryan Long said he believes that Lace is likely to become one of the most significant diamond operations to be developed in the next 10 years.

He pointed to the mine’s total resource of 13 million carats and that it is expected to generate US$77 million in revenue from the production 0.5 mcts during its first year of full production.

“We maintain our ‘buy’ rating and price target of 15 pence,” analyst Long said.

Fairfax’s Meyer currently also has a ‘buy’ recommendation with a price target of 22 pence.

DiamondCorp shares were last trading at 4.88 pence.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.