Proactiveinvestors United Kingdom - Diamonds & Gemstones RSS feed http://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom - Diamonds & Gemstones feed en Thu, 22 Feb 2018 19:08:33 +0000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com action@proactiveinvestors.com Stornoway's resource upgrade is positive, says Dundee http://www.proactiveinvestors.co.uk/companies/news/115395/stornoway-s-resource-upgrade-is-positive-says-dundee-115395.html Dundee Capital Markets has repeated a 'buy' rating on Stornoway Diamond Corp (TSE:SWY) following a resource upgrade at its Renard Diamond Mine in Quebec.

This should have a positive impact on a revised mine plan expected in mid-2016, suggests analyst Matthew O'Keefe.

The project is fully funded to production which should average 1.6 million carats per year over a 20-year mine life.

Earlier, Stornoway said it had increased the indicated resource at Renard 2 by 16% to 21.6 million carats by converting lower class inferred material to a depth of 700 metres, while the overall indicated resource now stands at 30.2 million carats, including reserves.

The mining plan has been revised to reflect the increase.

The firm also told investors there was substantial new exploration potential at both Renard 2 and 3, which both remain open.

O'Keefe said an updated mine plan, expected Q2/16 just before production startup, is now under development and will incorporate the increased indicated resources.

"It is expected to include a deepening of the R2 and R3 pits, a deepening of the underground mine infrastructure and inclusion of the indicated resource at R65 via open pit mining. No material changes to our model expected at this time as we have already incorporated deeper mining and the inclusion of R65."

The broker keeps its $1.30 price target on what it calls a "high risk" stock. The current price is C$0.72.

 

"Stornoway appears attractively priced trading at 0.41x our NAV. As the company nears production, we would expect the stock to rise and our multiple to expand towards its diamond producing peers that currently trade at an average of 0.57x NAV," it adds.

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Fri, 25 Sep 2015 20:16:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/115395/stornoway-s-resource-upgrade-is-positive-says-dundee-115395.html
Stornoway Diamond remains on track for initial production next year http://www.proactiveinvestors.co.uk/companies/news/105896/stornoway-diamond-remains-on-track-for-initial-production-next-year-60404.html Construction for Stornoway Diamond's (TSE:SWY) Renard mine in Quebec remains on track and on budget for initial production in the second half of 2016.

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Fri, 13 Mar 2015 14:20:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/105896/stornoway-diamond-remains-on-track-for-initial-production-next-year-60404.html
Dominion Diamond's updated mine plan for Diavik meets forecasts http://www.proactiveinvestors.co.uk/companies/news/105811/dominion-diamonds-updated-mine-plan-for-diavik-meets-forecasts-60292.html Dominion Diamond (TSE:DDC) (NYSE:DDC) released an updated mine plan for its 40-percent owned Diavik mine in the Northwest Territories last Friday, which met analysts' expectations.

The update included the A-21 pipe at Diavik, which has filled excess mill capacity at the mine, and is expected to improve margins and revive an otherwise declining production profile at the site.

"With A-21 filling excess mill capacity, Diavik's eight year mine life should remain robust with stable margins delivering consistent cash flow," said Dundee Capital Markets analyst Matthew O'Keefe in an analyst report released after market close on Friday.

Based on the updated tonnage, carat and cost estimates, Dundee adjusted its estimates, which continue to see A-21 "greatly maintaining margins over [Diavik's] eight year mine life."

Dominion Diamond also released Friday updated reserves to include A-21, which converted much of the previous measured and indicated resources to proven and probable reserves. Routine drilling increased reserve grades, Dundee said, while depletion decreased tonnage as expected. The mine's anticipated 8-year life was in line with Dundee's estimate.

The diamond miner released new cost estimates as well, with capex of C$392 million for the A-21 pipe meeting Dundee's estimate and the previous US$350 million guidance.

"Given that Diavik is largely a fixed cost operation, the operation benefits from the addition of A-21, which fills mill capacity and keeps cost per tonne metrics down," O'Keefe said.

Dundee also noted its outlook for diamond prices, saying that it believes lending tightening in the middle market will cause muted diamond price growth in the short term, though strong long-term supply/demand fundamentals will take diamond prices higher in the longer term.

Dominion Diamond, which plans on initiating a dividend after its year-end results are released in April, is also expected to release an updated resource estimate for its Ekati mine, which will include the impact of increased small stones, Dundee's O'Keefe said.

The brokerage, which also cited the ramp up of the high grade Misery pipe in 2016 as a positive upcoming catalyst, reiterated its buy rating on Dominion, and C$25.00 per share price target.

Shares fell 1.4 percent on Monday, to C$21.07 in Toronto, paring year-to-date gains to just over 1 percent. The stock has increased over 36 percent in the past 12 months.

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Mon, 09 Mar 2015 14:42:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/105811/dominion-diamonds-updated-mine-plan-for-diavik-meets-forecasts-60292.html
Mountain Province price target lowered at Dundee Capital after rights offering http://www.proactiveinvestors.co.uk/companies/news/105575/mountain-province-price-target-lowered-at-dundee-capital-after-rights-offering-59975.html Mountain Province Diamonds  (TSE:MPV) (NASDAQ:MDM), a natural resource exploration and development company, had its target price decreased at Dundee Capital Markets, which cited a more dilutive than expected rights offering.

Dundee, which maintained its “buy” rating on Mountain but said its peer Stornoway Diamond (TSE:SWY) is a better deal, lowered its target price objective to $6.50 from $7.00.

Mountain Province yesterday undertook a C$95 million rights offering backstopped by its largest shareholder, Dermot Desmond, to fund a $75 million cost overrun facility.

The cost overrun facility is a condition for the drawdown of its previously announced $370 million term loan facility.

Dundee said yesterday's offering is slightly more dilutive than its previously modeled $50 million overrun facility and $50 million equity raise. The deal represents 23.8 million in additional shares. 

Shares of the Toronto, Ontario-based company sank 6.3 percent to $3.43 at 3:17 p.m. in New York. The stock has lost 33 percent over the past year.

Along with current cash, Mountain Province should now be able to meet its March cash obligation and maintain its 49 percent interest in Gahcho Kué, Dundee said in research note to investors today.

Mountain Province’s share of the $433 million in planned capital expenditures for 2015 is $212 million, of which Dundee expects $40 million to be due in March.

Physical construction is approximately 10 percent complete, with Mountain Province indicating the overall project is now more than 50 percent complete. Gahcho Kué remains on track for initial production in the second half of next year as of December 31, 2014.

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Thu, 19 Feb 2015 19:31:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/105575/mountain-province-price-target-lowered-at-dundee-capital-after-rights-offering-59975.html
Mountain Province's quick credit approval for US$370 mln debt facility derisks: Dundee Capital http://www.proactiveinvestors.co.uk/companies/news/105340/mountain-provinces-quick-credit-approval-for-us370-mln-debt-facility-derisks-dundee-capital-59647.html Mountain Province Diamonds (TSE:MPV) announced this morning the credit approval for its US$370 million debt facility, which Dundee Capital Markets said is an incrementally positive step that should help derisk the company's ownership of the Gahcho Kue diamond project in the Northwest Territories.

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Tue, 03 Feb 2015 18:51:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/105340/mountain-provinces-quick-credit-approval-for-us370-mln-debt-facility-derisks-dundee-capital-59647.html
Dominion Diamond price target upped by Dundee following upbeat prefeasibility results for Jay deposit http://www.proactiveinvestors.co.uk/companies/news/105253/dominion-diamond-price-target-upped-by-dundee-following-upbeat-prefeasibility-results-for-jay-deposit-59529.html Dominion Diamond (TSE:DDC) had its price target hiked up by analysts at Dundee Capital Markets after the company released positive prefeasibility study results from the Jay pipe at its Ekati mine, which were ahead of the brokerage firm's estimates.

"We estimate Jay can be funded with existing cash and cash flow and its construction should extend Ekati's mine life from 2020 to beyond 2030," said analyst Matthew O'Keefe in a report released to investors late Tuesday.

The prefeasibility study showed an after-tax net present value of $610 million at a 7 percent discount rate, well ahead of Dundee's previous estimate of $355 million. After tax IRR was 16 percent.

Initial capex was estimated at $690 million, also better than Dundee's view of $800 million.

Total operating costs were seen at $75 per tonne, well below Dundee's conservative $112 per tonne estimate, O'Keefe said. This was partially offset, however, by slightly lower grades and base diamond values, he added.

The Jay deposit at the Ekati mine in the Northwest Territories is 65.3 percent owned by Dominion Diamond.

Production at Jay is scheduled to come online in 2020, just as previously planned operations at Ekati were expected to close. The deposit's 11-year mine life should extend Ekati's production past 2030, Dundee said.

The prefeasibility is based on permits being received for the deposit in 2016, and construction beginning in the second half of that year.

"We expect Dominion to proceed with Jay and estimate that it has sufficient capital to internally fund its growth plans, offering a relatively clear path to Jay and extending the mine life of Ekati," wrote O'Keefe.

"Nearer term, the high grade Misery pipe ramps up pushing free cash flow yield towards ~15% in C2016. Positive momentum should continue with the release of a technical report for A-21 and a dividend announcement in April."

Dundee's revised C$25.00 per share target price, up from C$23.00 previously, reflects an updated model, including a higher net asset value per share, decreased capex and lower cost estimates. 

The study outlined a throughput rate of 45.6 million tonnes, recovering 84.6 million carats at an average grade of 190 cpht over the life of the mine.

Dominion also operates the Diavik mine in the Northwest Territories. Shares rose 2.1 percent to C$20.30 on Wednesday, extending gains over the past 12 months to over 26 percent.

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Wed, 28 Jan 2015 15:14:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/105253/dominion-diamond-price-target-upped-by-dundee-following-upbeat-prefeasibility-results-for-jay-deposit-59529.html
Dominion Diamond gains on Q3 beat, plans for dividend http://www.proactiveinvestors.co.uk/companies/news/104663/dominion-diamond-gains-on-q3-beat-plans-for-dividend-58771.html Dominion Diamond (TSE:DDC) climbed after the company reported better-than-expected third quarter financials and said it would initiate a dividend after its year-end results are released in April.

The diamond producer reported cash flow per share of C$1.40, well above Street estimates of 66 cents, and adjusted earnings per share of 44 Canadian cents, on $222 million of revenue and production of 1.36 million carats.

Dundee Capital Markets has a buy rating and a C$23.00 price target on Dominion Diamond, with analyst Matthew O'Keefe saying that positive momentum should continue for the company based on yesterday's strong financial results and commitment to initiate a dividend.

The amount of the dividend is to be determined after year-end results in April. Dundee said the dividend announcement is earlier than anticipated, after the company recently freed up as much as C$253 million after the government of Northwest Territories accepted a surety bond to cover the reclamation liability for its Ekati mine last month.

"With its restricted cash freed up, the company should be able to fund its growth capex plans internally. Should the company choose to offer a recurring dividend, we estimate a 2% dividend should be sustainable given its planned upcoming capex at Misery, Jay and A-21," O'Keefe wrote in his report released Friday.

"Based on our estimates, we do not see Dominion's cash balance falling below US$200MM, which opens the possibility for a one-time special dividend."

The capital markets firm also highlighted the Diavik mine's better-than-estimated on-site cash costs of US$156 per tonne, and in line costs at Ekati. 

The company also decreased its annual cost of sales guidance at Diavik by $15 million to $260 million, and reduced Ekati cost guidance by $5 million to $470 million. 

At the end of third quarter, Dominion had seen an average 4 percent increase to diamond prices, noting that despite being a traditionally quiet period for the industry ahead of the Diwali holiday in India, it saw strong sales in rough diamonds in the latest quarter.

Dundee's O'Keefe said that aside from the dividend, other positive catalysts awaiting the company include a prefeasibility study for Jay (an expansion project for the company's Ekati mine) later this quarter, an updated resource for Ekati in Q1, and the possibility of a technical study for A-21 at Diavik in the first half of 2015.

The A-21 pipe is expected to fill excess mill capacity, improve margins and revive an otherwise declining production profile at the Diavik mine in the Northwest Territories.

Shares of Dominion advanced almost 4 percent to C$20.76 as of 11:25am ET. 

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Fri, 12 Dec 2014 15:44:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/104663/dominion-diamond-gains-on-q3-beat-plans-for-dividend-58771.html
Dundee lifts price target on Dominion Diamond, cites improving production profile http://www.proactiveinvestors.co.uk/companies/news/104418/dundee-lifts-price-target-on-dominion-diamond-cites-improving-production-profile-58440.html Dominion Diamond (TSE:DDC) had its price target raised and buy rating reiterated by Dundee Capital Markets today after Rio Tinto formally approved mine development of the open pit A-21 pipe at the Diavik mine last night.

The A-21 pipe will fill excess mill capacity, improve margins and revive an otherwise declining production profile at the Diavik mine in the Northwest Territories, adding $115 million in annual cash flow over its mine life and $2.52 to Dundee's net asset value per share, the brokerage said.

First production of the five-year mine life is expected in late 2018, with construction to begin immediately, Dominion Diamond said. The initial capex of $350 million, well below Dundee's initial $500 million estimate, is expected to be funded with cash and cash flow.

"We estimate a 30% IRR for the project which includes cost per tonne improvements at Diavik's largely fixed cost mill. A-21 should decrease overall costs at Diavik from the US$230/t range to the US$190/t range," Dundee's Matthew O'Keefe wrote.

The project is 60 percent owned by Rio Tinto and 40 percent by Dominion Diamond.

The A-21 pipe is well understood, according to Dominion Diamond, and the bulk of infrastructure is already in place from previous dike construction. The four year construction period is due to begin immediately with equipment transported up via this season's ice road.

"With A-21 and the NWT's recent acceptance of a surety bond over cash to cover closure costs, we see Dominion's production profile and balance sheet growing increasingly attractive. 

"This should increase Dominion's ability to pay a potential dividend. However, this may not be prudent until the high grade Misery pipe comes online in C2016," said Dundee.

Dundee's O'Keefe lifted his price target on the company to C$23.00 from C$21.00 previously, on an increase in the brokerage's net asset value per share after including A-21. The company's buy rating was reiterated, as Dundee expects Dominion's positive momentum to continue into next year. 

"With additional clarity and Dominion's free cash flow yield moving towards ~20% in C2016 with the high grade Misery pipe coming online and sustained with A-21, we see potential for Dominion Diamond shares to ultimately trade at a premium multiple," said O'Keefe.

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Thu, 27 Nov 2014 15:59:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/104418/dundee-lifts-price-target-on-dominion-diamond-cites-improving-production-profile-58440.html
Dominion Diamond gains on better-than-expected Q3 production, Dundee Capital expects upward rerating http://www.proactiveinvestors.co.uk/companies/news/104332/dominion-diamond-gains-on-better-than-expected-q3-production-dundee-capital-expects-upward-rerating-58318.html Dominion Diamond (TSE:DDC) shares were jumping Friday after the company posted third quarter production slightly ahead of expectations, as its Ekati mine in the Northwest Territories continued to benefit from increased small stone recovery.

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Fri, 21 Nov 2014 17:47:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/104332/dominion-diamond-gains-on-better-than-expected-q3-production-dundee-capital-expects-upward-rerating-58318.html
Dominion Diamond's acting CEO to keep Jay project on track, says Dundee http://www.proactiveinvestors.co.uk/companies/news/104310/dominion-diamonds-acting-ceo-to-keep-jay-project-on-track-says-dundee-58286.html Dominion Diamond's (TSE:DDC) shares dropped Thursday after the diamond producer announced its chief executive officer and chairman Robert Gannicott is taking medical leave, which is expected to last until mid-February.

Dundee Capital Markets said it sees the development as significant, as Gannicott has been CEO of the company since 1999, and has played a "key role" in directing its strategy over the long term.

Analyst Matthew O'Keefe retiterated his buy rating and C$21.00 price target on the Canadian diamond company, saying the acting CEO, Brendan Bell, will keep its Jay project on track. 

Bell is currently the executive VP of community affairs for the company, and was previously the Minister Responsible for Energy and Mines, Minister Responsible for the Environment and Minister of Justice and Attorney General in the Government of the Northwest Territories.

O'Keefe said Bell has been an important part of the permitting process for Jay, with the acting CEO to receive support from Elliot Holland, who will be responsible for Jay and business development. Holland was previously a partner at McKinsey Consulting, and has experience in diamond mining, operations, strategy and capital projects, Dundee said.

The capital markets firm also noted the diamond company's positive upcoming catalysts, including fiscal third quarter production results this week, a prefeasibility study for Jay expected by year-end and third quarter financials in the second week of December.

The Jay project is an expansion of the company's Ekati diamond mine in the Northwest Territories. Its shares of production from its two assets, Ekati and Diavik, is approximately 4 million carats.

"An updated mine plan for Jay by year end and a construction decision on A-21 in 2015 should provide additional clarity on Dominion's long-term future which should provide a rerating of Dominion shares," O'Keefe wrote.

The company's current lead director, Dan Jarvis, will assume the role of acting chairman while Gannicott is on leave.

Shares of Dominion Diamond fell 0.55 percent to C$16.26 on Thursday afternoon.

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Thu, 20 Nov 2014 17:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/104310/dominion-diamonds-acting-ceo-to-keep-jay-project-on-track-says-dundee-58286.html
Pangolin Diamonds finds more kimberlite indicator minerals at Malatswae project http://www.proactiveinvestors.co.uk/companies/news/104093/pangolin-diamonds-finds-more-kimberlite-indicator-minerals-at-malatswae-project-57988.html Pangolin Diamonds (CVE:PAN) says it has recovered additional kimberlite indicator minerals from a detailed surface sampling program at its Malatswae project in Botswana.

In total, 13 mineral grains and a fragment of garnet peridotite were recovered from two separate source areas at the site, which are in close proximity to the previously reported diamonds, according to the Toronto, Ontario-based company's release.

All indicator minerals show features consistent with a proximal host rock such as kimberlite, it added.

A total of 62 soil samples from 31 sample sites were collected to further qualify the earlier discovery of three diamonds and kimberlite indicator minerals from within a 1 sq km area of the Malatswae project. Using an airborne magnetic layer, two geophysically-distinct areas were selected for follow up close-spaced soil sampling.

The company said drilling at the site is expected to begin before November 8, after the completion of a ground magnetic survey over a 3 by 3 km area.

Pangolin has four exploration properties in the world’s leading country for diamond production by value, including Tsabong North, which is about 100 km north of the town of Tsabong in southwestern Botswana.

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Fri, 07 Nov 2014 19:13:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/104093/pangolin-diamonds-finds-more-kimberlite-indicator-minerals-at-malatswae-project-57988.html
Pangolin Diamonds closes financing for nearly $430,000 for exploration in Botswana http://www.proactiveinvestors.co.uk/companies/news/103897/pangolin-diamonds-closes-financing-for-nearly-430000-for-exploration-in-botswana-57745.html Toronto-based Pangolin Diamonds (CVE:PAN) has closed a non-brokered private placement financing for nearly $430,000 in total proceeds, which will be used to advance its diamond projects in Botswana.

The offering consisted of 7.13 million units at a price of 6 cents apiece. Each unit is made up of one common share and one share purchase warrant, with every warrant entitling the holder to acquire an additional share at a price of 12 cents, for a period of two years from closing.

The company raised a total of $427,916, with insiders of Pangolin taking up $83,216 of the offering. Aberdeen Gould Capital Markets led and arranged the placement.

Pangolin said the new funds will be applied to drilling and geological and geophysical sampling programs at its diamond projects in Botswana, as well as for general working capital needs.

Last month, the junior explorer reported four more diamonds were recovered from its Magi target on its Tsabong North property. A total of seven diamonds have now been recovered from the Magi target.

The Tsabong North project is 1,546 square kilometres in size, with the company having tested a series of airborne geophysical targets, the most significant of which is the Magi area where an extensive kimberlitic tuff was intersected in six drill holes.

Magi was discovered last year after the company announced it modeled the structure at 270 hectares, making it one of the largest kimberlites in the world.      

Pangolin has four exploration properties in the world’s leading country for diamond production by value, including Tsabong North, which is about 100 km north of the town of Tsabong in southwestern Botswana.

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Wed, 29 Oct 2014 16:54:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/103897/pangolin-diamonds-closes-financing-for-nearly-430000-for-exploration-in-botswana-57745.html
Rockwell Diamonds says Q2 revenue rises 71% on higher volumes http://www.proactiveinvestors.co.uk/companies/news/103621/rockwell-diamonds-says-q2-revenue-rises-71-on-higher-volumes-57359.html Rockwell Diamonds (TSE:RDI) (JSE:RDI) says its fiscal second quarter proved positive overall, with the company's revenue rising 71 percent year-on-year while unit operating cash costs declined 22 percent from the first quarter.

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Fri, 10 Oct 2014 14:16:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/103621/rockwell-diamonds-says-q2-revenue-rises-71-on-higher-volumes-57359.html
Kennady Diamonds tumbles after results from Kelvin 25 ton mini-bulk sample disappoint http://www.proactiveinvestors.co.uk/companies/news/103552/kennady-diamonds-tumbles-after-results-from-kelvin-25-ton-mini-bulk-sample-disappoint-57243.html Kennady Diamonds (CVE:KDI), which controls 100 percent of the Kennady North diamond project, plunged in midday trades after announcing the diamond recovery results from the Kelvin 25 ton mini-bulk sample. 

Shares fell 26 percent to C$5.88 at 2:22 p.m. in Toronto, trimming this year's advance to 12 percent.

The Kelvin total sample grade of 2.16 carats per tonne is in line with the company's guidance of 'better than 2 carats per ton' and confirms the potential for Kelvin to host a high grade diamond resource, Toronto-based Kennady Diamonds said in a statement today.

But it said that the number of larger diamonds in the sample is lower compared with previous Kelvin samples. A higher frequency of larger diamonds in previous samples resulted in sample grades well above 2 carats per ton. 

"The sampling and treatment methods used for the mini-bulk sample will be reviewed to understand the reasons for this," Kennady's chief executive officer Patrick Evans said in the statement.

The sample was processed by dense media separation at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council.

The company said that it expects to recover a further 28 ton mini-bulk sample as part of the current summer/fall Kelvin drill program and this sample will be dispatched to the SRC for processing as soon as possible. 

"We expect the diamond recovery results from this second mini-bulk sample to aid in understanding the diamond size frequency distribution of the Kelvin kimberlite," Evans added.

The 25 ton sample was recovered by drilling from ice in an area where the Kelvin kimberlite outcrops at surface or where the country rock cover is relatively thin. Prior to processing, the Kelvin sample was divided into four batches based on four distinct kimberlite phases.  

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Mon, 06 Oct 2014 20:03:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/103552/kennady-diamonds-tumbles-after-results-from-kelvin-25-ton-mini-bulk-sample-disappoint-57243.html
Mountain Province raises $100 mln in private financing http://www.proactiveinvestors.co.uk/companies/news/103493/mountain-province-raises-100-mln-in-private-financing-57165.html Mountain Province Diamonds (TSE:MPV), a precious-gem project developer, raised C$100 million in private placements for use in the construction of the Gahcho Kué project, located in Canada’s Northwest Territories.

A syndicate of underwriters led jointly by BMO Capital Markets, RBC Capital Markets and Scotia Capital had agreed to buy 15 million common shares on a bought-deal basis, at C$5 apiece for gross proceeds of C$75 million, the Toronto-based company said in a statement late yesterday.

In the meantime, Mountain Province said it intended to undertake a nonbrokered private placement of five million common shares priced at C$5 apiece to Bottin International Investments and other qualified investors.

The offering and the nonbrokered placement were expected to close on or about October 16. 

Mountain Province is a 49 percent participant with De Beers Canada in the Gahcho Kué joint venture, at Kennady Lake. 

The project consists of a cluster of four diamondiferous kimberlites, three of which have a probable mineral reserve of 35.4 million tonnes, grading 1.57 ct/t for total diamond content of 55.5-million carats.

A 2014 National Instrument 43-101 feasibility study report had indicated that the Gahcho Kué project had an internal rate of return of 32.6 percent.

The Gahcho Kué JV had received a Class A land-use permit and Type A water licence, both being critical permits required to complete mine construction. Site preparation started in December and the overall project was on schedule for first production during the second half of 2016.

 

 

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Wed, 01 Oct 2014 20:21:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/103493/mountain-province-raises-100-mln-in-private-financing-57165.html
Pangolin reports 4 more diamonds recovered from Magi target in Botswana http://www.proactiveinvestors.co.uk/companies/news/103416/pangolin-reports-4-more-diamonds-recovered-from-magi-target-in-botswana-57060.html Pangolin Diamonds (CVE:PAN), which is building a diamond exploration and development company in Botswana, reported four more diamonds have been recovered from the 100 percent-owned Magi target. Shares advanced in morning trades. The results of diamond recovery analysis for ten samples from Tsabong North-Magi target, submitted to C. F. Mineral Research in Kelowna, Canada, returned four diamonds, the Toronto, Ontario-based company said in a statement today.

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Thu, 25 Sep 2014 15:32:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/103416/pangolin-reports-4-more-diamonds-recovered-from-magi-target-in-botswana-57060.html
Pangolin recovers three diamonds at Malatswae within 1 sq km http://www.proactiveinvestors.co.uk/companies/news/103262/pangolin-recovers-three-diamonds-at-malatswae-within-1-sq-km--56829.html Pangolin Diamonds (CVE:PAN)  has announced the sizes of two diamonds recovered at its Malatswae kimberlite project in Botswana last week, with characteristics of the diamonds suggesting a nearby source. 

So far at the project, it has recovered three diamonds within 1 square km, with clay coatings on the diamonds suggesting a kimberlitic source, Pangolin said.

Drilling is expected to follow ground surveys at the project, which are currently underway. 

Two of the diamonds, which were announced last week, do not have carat weight information due to limitations with the laboratory, said the company. The third diamond, a macro sized stone, was announced in late July, and weighs 0.005484 carats.

All of the diamonds were described using a binocular microscope, Pangolin said.

The Malatswae kimberlite project covers 1,058 sq km and is located 70km southeast of the Orapa Mine. Previous work by Pangolin has showed that the chemical compositions of garnets recovered in soil samples are "distinctly different" from the garnets at the Orapa kimberlite field, suggesting that an undiscovered kimberlite may be found within the project area, the company said.

Pangolin has four exploration properties in the world’s leading country for diamond production by value, including Tsabong North, which is about 100 km north of the town of Tsabong in southwestern Botswana. The Tsabong North project is 1,546 square kilometres in size, with the company having tested a series of airborne geophysical targets, the most significant of which is the Magi area where an extensive kimberlitic tuff was intersected in six drill holes.

Magi was discovered last year after the company announced it modeled the structure at 270 hectares, making it one of the largest kimberlites in the world.      

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Tue, 16 Sep 2014 14:13:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/103262/pangolin-recovers-three-diamonds-at-malatswae-within-1-sq-km--56829.html
Pangolin recovers two more diamonds from Malatswae project http://www.proactiveinvestors.co.uk/companies/news/103201/pangolin-recovers-two-more-diamonds-from-malatswae-project--56738.html Pangolin Diamonds Corp. (CVE:PAN) says it has recovered two additional diamonds at its Malatswae project in east-central Botswana. 

The diamonds will now be viewed with a scanning electron microscope to characterize the surface textures and features, with the work to help in finding out the proximity to the source of the two stones, after which size determinations will be made.

The company told investors Thursday that samples MSCd067B and MCDd095A were collected during a close-spaced follow-up sampling program of an earlier macro-diamond discovery in July. Each 20kg sample was collected in an area of approximately 3 sq km, Pangolin said. 

In total, 244 samples were collected, with a number of them also reporting ilmenite, a common indicator mineral of kimberlite.

The samples were processed through a lab in Botswana, with a concentrate later examined by a specialist and the stones sent to MCC Geoscience in Canada, which confirmed the two diamonds, according to the Toronto, Ontario-based diamonds explorer.

The three diamonds recovered to date within the area of detailed sampling are found within one sq km, Pangolin said. A sub-set of soil samples collected together with the close-spaced samples are now being submitted for analysis, which is expected to further refine magnetic targets in the area.

The Malatswae kimberlite project covers 1,058 sq km and is located 70km southeast of the Orapa Mine. Previous work by Pangolin has showed that the chemical compositions of garnets recovered in soil samples are "distinctly different" from the garnets at the Orapa kimberlite field, suggesting that an undiscovered kimberlite may be found within the project area, the company said.

Pangolin has four exploration properties in the world’s leading country for diamond production by value, including Tsabong North, which is about 100 km north of the town of Tsabong in southwestern Botswana. The Tsabong North project is 1,546 square kilometres in size, with the company having tested a series of airborne geophysical targets, the most significant of which is the Magi area where an extensive kimberlitic tuff was intersected in six drill holes. 

Magi was discovered last year after the company announced it modeled the structure at 270 hectares, making it one of the largest kimberlites in the world.      

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Thu, 11 Sep 2014 15:35:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/103201/pangolin-recovers-two-more-diamonds-from-malatswae-project--56738.html
Dominion Diamond returns to Q2 profit on improved revenue http://www.proactiveinvestors.co.uk/companies/news/103095/dominion-diamond-returns-to-q2-profit-on-improved-revenue-56582.html Dominion Diamond (TSE:DDC) rose in midday trades after swinging to a profit in its fiscal second quarter as revenue improved and the cost of sales declined.

Shares gained 2.5 percent to C$14.98 at 1:57 p.m. in Toronto, extending gains over the past year to 12 percent.

Net income was $26.6 million, or $0.31 per share, in the three-month period ended July 31, compared with a loss of $13.9 million, or $0.16 per share, in the year-earlier period, the Toronto-based company said in a statement late yesterday.

Revenue increased to $277.3 million in the second quarter from US$261.8 million year over year.

The cost of sales fell to $221.2 million from $231.1 million and gross margins improved to $56.1 million, or 20.2 percent from $30.7 million, or 11.7 percent.

"It is a pleasure to be able to report another quarter that exceeds expectations," Robert Gannicott, chief executive officer of Dominion Diamond, said in the statement. "We have embedded improvements to diamond recovery, rough diamond marketing and cost control efficiencies to deliver a story that continues to improve."

The company said the first six months of the year had seen continuing growth in diamond jewellery sales in the United States and the mass market in China, which together account for over half of the world's diamond jewellery.

As a result, rough diamond prices have risen about eight per cent, said Dominion, which has interests in two diamond mines in the Northwest Territories — an 80 percent interest in the Ekati mine and a 40 percent minority stake in the Diavik mine in a joint venture with Rio Tinto.


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Thu, 04 Sep 2014 19:27:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/103095/dominion-diamond-returns-to-q2-profit-on-improved-revenue-56582.html
Pangolin Diamonds issues drilling update from Mmadinare http://www.proactiveinvestors.co.uk/companies/news/102925/pangolin-diamonds-issues-drilling-update-from-mmadinare-56312.html Pangolin Diamonds Corp. (CVE:PAN) told investors Wednesday that drill core samples from two holes drilled on the SWS21 intrusive target on its Mmadinare diamond project in Botswana are now on route to Canada for diamond recovery work.

The news came in an update on the company's drilling program at the property, where in total, 400.5 metres were drilled on the SWS21 target.

The first hole, SWS21-001, intersected an "intensely altered zone" from 45 to 71.6 metres, Pangolin said. The second hole, SWS21-002, collared 130 metres to the southeast, intersected the same zone of intensely altered rock from 33.7 to 61.1 metres characterized by other mineral formations.

Meanwhile, the company said that the mineral chemistry of a number of indicator minerals recovered from its soil sampling programs were received, and processed by Pangolin through its dense media separation plant. Selected grains were then delivered to laboratories in Canada for further analysis, with the diamond exploration company now reviewing the results to determine how best to proceed.

Pangolin said there was one kimberlitic association, and 14 with a lower mantle diamond inclusion affinity.

Last month, the Toronto-based diamond explorer said it recovered a macro-diamond from a soil sample on its recently acquired Malatswae project prospecting license in north-central Botswana. The white diamond weighs 0.005484 carats, and was retained on a standard Endecotts sieve with the mesh size of 0.600 mm. 

Pangolin has four exploration properties in the world’s leading country for diamond production by value, including Tsabong North, which is about 100 km north of the town of Tsabong in southwestern Botswana. The Tsabong North project is 1,546 square kilometres in size, with the company having tested a series of airborne geophysical targets over the past nine months, the most significant of which is the Magi area where an extensive kimberlitic tuff was intersected in six drill holes. 

Magi was discovered last year after the company announced it modeled the structure at 270 hectares, making it one of the largest kimberlites in the world.      

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Wed, 20 Aug 2014 19:15:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/102925/pangolin-diamonds-issues-drilling-update-from-mmadinare-56312.html
Dominion Diamond beats its own forecasts for Q2 production, sales and pricing http://www.proactiveinvestors.co.uk/companies/news/102901/dominion-diamond-beats-its-own-forecasts-for-q2-production-sales-and-pricing-56275.html Dominion Diamond (TSE:DDC) (NYSE:DDC) has posted rough diamond production, sales and pricing that all exceeded its targets in the second quarter, the company said Tuesday. 

The Canadian diamond producer, which reports in US currency, told investors early this morning that its Ekati and Diavik diamond mines both performed "exceptionally well" during the three month period through to the end of July. 

Total sales for the three months to July 31 were $277.3 million, as the company sold a total of 1.5 million carats. The company said the figures exclude the processing of material from the Misery Satellite pipes at the Ekati mine, which it expects will begin commerical production for accounting purposes on September 1. 

The company said that for the second straight quarter, diamond production at its Ekati mine was substantially ahead of plan due to higher than expected grades, coupled with operational improvements to the processing plant implemented over the last 10 months.

It estimates that these improvements have increased the recovered grade by about 15 percent during the first six months of this year. 

Meanwhile, at Diavik, ore mined was 20 percent ahead of plan during the latest period, thanks to higher production from all three kimberlite pipes on account of favourable ground conditions and improved availability of equipment.

On top of these results, Dominion said that as at July 2014, overall pricing was up approximately 8 percent since the beginning of the calendar year.

At Q2 end, the company had rough diamond inventory with an estimated market value of approximately $315 million, of which $45 million represents discretionary inventory with the balance being work in progress.

Separately, the diamond producer also on Tuesday appointed Ron Cameron as its chief financial officer, effective September 8. Cameron will be based in Yellowknife, and was previously executive VP of Concentra Financial.

Shares of Dominion Diamond were unchanged Tuesday afternoon at C$15.00.

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Tue, 19 Aug 2014 19:30:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/102901/dominion-diamond-beats-its-own-forecasts-for-q2-production-sales-and-pricing-56275.html
Kennady Diamonds rallies on sample grade at Faraday, among the highest recorded in Canada http://www.proactiveinvestors.co.uk/companies/news/102649/kennady-diamonds-rallies-on-sample-grade-at-faraday-among-the-highest-recorded-in-canada-55935.html Shares of Kennady Diamonds (CVE:KDI) were rising Tuesday afternoon after the company unveiled diamond recovery results from its Faraday spring drilling program at its Kennady North project in Canada's Northwest Territories. 

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Tue, 05 Aug 2014 19:18:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/102649/kennady-diamonds-rallies-on-sample-grade-at-faraday-among-the-highest-recorded-in-canada-55935.html
Stornoway Diamond stands apart from the rest with Renard project: Scotia Capital http://www.proactiveinvestors.co.uk/companies/news/102453/stornoway-diamond-stands-apart-from-the-rest-with-renard-project-scotia-capital-55645.html Stornoway Diamond (TSE:SWY) is a stock with "tremendous upside", according to Scotia Capital analyst Craig Johnston, who has initiated coverage of the Canadian diamond developer with a sector outperform rating and a 12-month target price of $1.00.

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Wed, 23 Jul 2014 20:43:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/102453/stornoway-diamond-stands-apart-from-the-rest-with-renard-project-scotia-capital-55645.html
Pangolin jumps on latest micro diamond discovery in Botswana http://www.proactiveinvestors.co.uk/companies/news/102419/pangolin-jumps-on-latest-micro-diamond-discovery-in-botswana-55603.html Shares of Pangolin Diamonds (CVE:PAN) were rising Tuesday after the company said it recovered a macro-diamond from a soil sample on its recently acquired Malatswae project prospecting license in north-central Botswana. Shares surged more than 18 percent early today, to 13 Canadian cents. The stock has a 52-week range of 10 to 53 cents.

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Tue, 22 Jul 2014 16:31:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/102419/pangolin-jumps-on-latest-micro-diamond-discovery-in-botswana-55603.html
Rockwell Diamonds hits 7-month high after returning to Q1 profit http://www.proactiveinvestors.co.uk/companies/news/102268/rockwell-diamonds-hits-7-month-high-after-returning-to-q1-profit-55384.html Rockwell Diamonds Inc. (TSE:RDI) jumped to a 7-month high after the South African miner  returned to profit in its fiscal first quarter.

Shares climbed to 43 Canadian cents, the highest intraday price since Dec. 4, and were trading at 40 Canadian cents, up 8.1 percent, at 3:15 p.m. in Toronto.

Net income was C$345,000 in the three-month period ended May 31, compared to a net loss of C$1.2 million, a year earlier, the Johannesburg, South Africa-based company said in a statement late yesterday.

Revenue rose 67 percent year on year to C$15.1 million, with C$9.7 million in direct diamond sales and an additional C$5.4 million from its beneficiation partners. 

Production jumped 90 percent to 9,162 carats, with 4,800 carats derived from the company's royalty mining contractors. Inventory at the close of the first quarter totaled 5,237 carats carried forward, including 2,271 carats on royalty mining contracts.

"This is a first, as well as a significant achievement after three years of rebuilding Rockwell," Chief Executive Officer James Campbell said in the statement. "These results also represent the eighth successive quarter of US dollar denominated revenue growth, highlighting the consistent delivery against our plan, which saw our exit from lossmaking operations and the resolution of a number of corporate legacy issues."

Campbell reiterated the company's drive to produce higher-quality diamond, especially from its Middle Orange River project in South Africa. The average stone size produced from all properties increased 18 percent in the first quarter to 4.60 carats compared with 3.80 carats one year earlier. 

 

 

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Fri, 11 Jul 2014 20:50:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/102268/rockwell-diamonds-hits-7-month-high-after-returning-to-q1-profit-55384.html
Dominion Diamond beats estimates, trading volume soars http://www.proactiveinvestors.co.uk/companies/news/101793/dominion-diamond-beats-estimates-trading-volume-soars-54731.html Dominion Diamond (TSE:DDC) (NYSE:DDC) shares rose on Thursday after the diamond producer posted better-than-expected results for its fiscal 2015 first quarter.

For the three months to April 30, the world's third largest producer of rough diamonds by value reported a net profit of $14.67 million, or 17 cents per share, compared to $506.16 million, or 4 cents per share a year ago.

The Thomson Reuters consensus was for earnings of 11 cents. 

Revenue grew to $175.52 million from $108.84 million, well topping the consensus estimate of $108.8 million.

The company said the first quarter marks the anniversary of the sale of its Harry Winston luxury business to the Swatch Group and the acquisition of the Ekati diamond mine in the Northwest Territories, in which it holds an 80% stake. It also has a 40% interest in the Diavik diamond mine in the same region.

Production at both mines during the quarter was substantially ahead of expectations, according to Dominion's statement.

"A year on from our purchase of the Ekati operation, we continue to improve ore production and recoveries as we develop new ore sources," said chairman and chief executive, Robert Gannicott.

"The receipt of full operating permits for the Lynx open pit development in less than a year from application speaks better than words about the determination of a newly empowered Government of the Northwest Territories to effectively manage through this transition and to support well planned resource development."

The company also noted that market sentiment is reflecting optimism of the U.S. retail market, with demand for diamonds continuing to be steady from China and picking up in India.

Dominion said that stronger-than-expected production at Ekati was due to utilizing the processing plant capacity to a maximum, as well as higher than expected grades in the reserve feed and an increase in diamond recovery due to improvements to the processing plant implemented over the last eight months.

Ore processing at the Diavik mine was 11% ahead of plan, the diamond producer said, as a result of greater ore availability, higher mining rates and improved equipment. 

Dominion, which supplies rough diamonds to the global market through its sorting and selling operations in Canada, Belgium and India. Analysts at Barclays last month initiated coverage on the stock, setting an “equal weight” rating and a $14.00 price target. 

Shares edged up 0.3% to C$14.74 on Thursday. The stock attracted significant volumes today, with approximately 454,896 shares changing hands, compared to the 30-day average volume of 128,905 shares.

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Thu, 12 Jun 2014 20:44:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/101793/dominion-diamond-beats-estimates-trading-volume-soars-54731.html
Stornoway Diamond climbs on closing of over $373 mln in financings http://www.proactiveinvestors.co.uk/companies/news/101473/stornoway-diamond-climbs-on-closing-of-over-373-mln-in-financings-54312.html Shares of Stornoway Diamond (TSE:SWY) were on the rise Friday after closing a C$132.02 million public offering of subscription receipts, a precondition for the near $1 billion financing agreement penned last month for its Renard diamond project in Quebec.

The company sold 188.6 million subscription receipts at a price of 70 Canadian cents. The subscription receipts, under the ticker symbol "SWY.R", began trading today.

It also announced the closing of its previously announced private placement, selling 345.5 million subscription receipts at 70 cents apiece, for proceeds of C$241.88 million.

The company said the public offering and private placement were made under a binding financing agreement between Stornoway, Orion Co-Investments, Ressources Quebec (RQ) -- a subsidiary of Investissement Quebec -- and Caisse de depot et placement due Quebec (CDPQ), for the construction of the Renard diamond project in April. 

This deal proposed a series of financing transactions totalling C$944 million, with funding commitments of US$360 million from Orion, C$220 million from RQ and C$105 million from the Quebec pension plan, one of Canada's largest institutional investors. It also includes a marketed offering of common share subscription receipts and an equipment financing facility with Caterpillar Financial. 

The funds raised so far will be held in escrow pending the completion of the financing transactions, with holders of public subscription receipts to receive one common share and one half of a share purchase warrant. Every subscription receipt holder under the private placement will get one common share. 

"The successful closing of the public offering of subscription receipts is an important milestone for Stornoway, and a precondition for the completion of the overall project financing agreement announced on April 9th," said president and CEO Matt Manson.

"This agreement contemplates financing commitments to fully fund the Renard Diamond Project through construction to the declaration of commercial production, including all contingencies, capital escalation allowances, working capital requirements, and financing costs."

The chief executive said the company is looking forward to submitting the equity, debt and streaming agreement that it has arranged to its shareholders for their approval at a special meeting on June 26. 

Principal project construction is expected to begin once shareholder approvals are secured, while all remaining transaction conditions must also be met, including the completion of definitive documentation.

The Renard project, located 350 km north of Chibougamau in the James Bay region of north-central Québec, has the potential to become a significant producer of high value rough diamonds over a long mine life, according to a feasibility study released in 2011.

The property has an estimated 17.9 million carats in probable mineral reserves and total indicated resources of 27.1 million carats, with a further 16.85 million carats classified as inferred mineral resources.

Shares of Stornoway were last up 5.6% on Friday, at 75 Canadian cents, reaching a high of 82 cents during the session. The stock has a 52-week high of C$1.22. 

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Fri, 23 May 2014 19:10:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/101473/stornoway-diamond-climbs-on-closing-of-over-373-mln-in-financings-54312.html
Dominion Diamond gains on Q1 performance http://www.proactiveinvestors.co.uk/companies/news/101410/dominion-diamond-gains-on-q1-performance-54229.html Dominion Diamond Corp (TSE:DDC) (NYSE:DDC), which sold the Harry Winston jewelry brand last year to Swatch Group AG, gained 4.4% to C$13.90 after saying rough diamond production, sales and prices all exceeded targets for the first quarter of its fiscal 2015 year. 

The company said that all the numbers for the three months from February to April all exceeded targets to the extent that the estimated value of its production at current sales prices is ahead of expectations by about $100 million.

Total sales in the first quarter, on a preliminary basis, came to $175.5 million, including $82.7 million from its Diavik rough diamond mine and $92.8 million from the Ekati mine, both of which are located in the Northwest Territories.

The diamond miner said its production guidance for each mine will be reviewed at the end of the second quarter. In the first quarter, output at Ekati was 24% ahead of target, while production at Diavik was 13% ahead of estimates, it said.

Overall pricing in the first quarter was also up 7% since the beginning of the calendar year, according to the statement.

At April 30, the company had inventory with an estimated market value of approximately $285 million, of which $65 million represents discretionary inventory with the balance being work in progress.

Dominion supplies rough diamonds to the global market through its sorting and selling operations in Canada, Belgium and India and is the world's fourth largest producer of rough diamonds by value.

Shares were up 4.3% in Toronto in late afternoon trade, at C$13.88. 

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Tue, 20 May 2014 20:19:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/101410/dominion-diamond-gains-on-q1-performance-54229.html
Pangolin recovers diamonds from Magi area in Botswana http://www.proactiveinvestors.co.uk/companies/news/101403/pangolin-recovers-diamonds-from-magi-area-in-botswana-54222.html Pangolin Diamonds Corp. (CVE:PAN) has recovered micro-diamonds from a series of recently acquired core samples on its Magi kimberlite, the company said Tuesday, at its Tsabong North project in Botswana.

 

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Tue, 20 May 2014 18:39:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/101403/pangolin-recovers-diamonds-from-magi-area-in-botswana-54222.html
Pangolin jumps after raising over $700,000 for Botswana projects http://www.proactiveinvestors.co.uk/companies/news/101355/pangolin-jumps-after-raising-over-700000-for-botswana-projects-54150.html Shares of Pangolin Diamonds (CVE:PAN) were on the rise Thursday after the company closed a $718,000 private placement financing to support ongoing drilling and sampling at its diamond projects in Botswana.

The offering consisted of 7.18 million units at a price of 10 cents apiece. Each unit is made up of one common share and one share purchase warrant, with every warrant allowing the holder to buy an additional share at a price of 20 cents for a period of two years.

The stock climbed 11.5% to 14.5 Canadian cents on Thursday in Toronto.

Pangolin, which has four exploration properties in the world’s leading country for diamond production by value, is focused on Tsabong North, which is about 100 km north of the town of Tsabong in southwestern Botswana. The diamond explorer has found more than 50 drill-ready targets in the area, several of which have surface areas greater than 20 hectares.

Currently, one diamond drill continues to test exploration targets at Tsabong North, including Magi, which was discovered last year after the company announced it modeled the structure at 270 hectares, making it one of the largest kimberlites in the world. 

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Thu, 15 May 2014 16:15:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/101355/pangolin-jumps-after-raising-over-700000-for-botswana-projects-54150.html