South African diamond miner Diamondcorp (LON:DCP) has bumped up the proceeds of its recent share placing by £0.5mln after the broker option was exercised.
Applicants for the additonal shares, including a number of directors, paid 6p per share, the same as the placing price. It took the total amount of money raised in the funding to £2mln.
House broker Panmure Gordon also reinstated research coverage with a ‘buy’ recommendation and new target price of 11.5p (14.5p).
Panmure has a value on the Lace mine operation of US$124.5mln, or 19p/share. The 11.5p price target is based on a blended average of net asset value and earnings. A discount rate of 12.6% acknowledges the risks before full and profitable production is reached, it adds.
Completion of the 1,500t underground ore silo marked a significant milestone in the company’s ability to achieve the stated 30,000tpm of kimberlite from the Upper K4 Block this month, while a recent sale of two run of mine parcels in South Africa at $189/ct for the kimberlite diamonds and $53/ct for tailings diamonds were also both ahead of forecasts..
Shares were 6.6p today.