DiamondCorp, the UK-based South African junior diamond miner that underwent an autumn of misfortune including fires and floods at its Lace Mine, has filed to appoint administrators of the company after a business rescue plan failed to result in a solution to their liquidity issues. The decision of the listed holding company to go into administration comes despite being months away from steady-state production, as local bondholders and the Association of Mineworkers and Construction Union (ACMU) frustrated it efforts to refinance, writes Business Day.
DiamondCorp, the UK-based South African diamond miner that underwent an autumn of misfortune including fires and floods at its Lace Mine, announced yesterday it will lay off all the mine's employees after a business rescue plan failed to result in a solution. The announcement comes after discussions between a mining union - the Association of Mining & Construction Union (AMCU) - and DiamondCorp's lender - the Industrial Development Corporation of South Africa (IDC) - ended without a settlement being reached on a collective agreement to allow care and maintenance to commence.
Southern African diamond mining, development and exploration company DiamondCorp announced last week it would raise £1million ($1.23M) through a placing at 4p ($0.05). The South African-focused diamond miner initiated the funding round as a first step in pulling its Lace mine out of Business Rescue, and now reports that the placing is progressing well. They have extended the closing date for the round of funding that will bring its diamond mine out of the South African equivalent of administration.
DiamondCorp, the UK-based South African diamond miner that has undergone an autumn of misfortune including fires and floods at its mine, reports soft prices obtained from the sale of rough diamonds recovered from the Lace mine prior to being placed in business rescue: $115.46 per carat.
Extreme thunderstorms in South Africa have flooded DiamondCorp's Lace diamond mine, forcing the company to shut down production for at least three months, writes DiamondCorp in a press release.
Following several tumultuous weeks in which DiamondCorp announced it was considering selling off its Lace Mine or entering into a merger, and then restructured its management as part of a financing facility agreement, the company has now decided to terminate the "formal sale process" with immediate effe
DiamondCorp has announced: "following accelerated financing discussions, the company has entered into a Shariah-compliant [no interest] secured convertible financing facility with Rasmala plc, a leading independent investment manager and shareholder in the company." DiamondCorp and Rasmala have agreed to the drawdown of two tranches for a total principal amount of £700,000 ($856,000). The first, in the amount of £400,000 ($489,000), is to be drawn down immediately.
After a tumultuous week that started with the announcement that full production at its Lace diamond mine in South Africa would be delayed until February 2017 and that it needed to raise additional equity and/or debt of around $3m to 3.65m (£2.5m to £3.0m) in the near term to cover the anticipated cash required to fund operations through to commercial production, included
DiamondCorp's 74%-owned subsidiary, Lace Diamond Mines (Pty) Limited has been issued with a Section 54 shut down notice on underground operations by the South African Department of Mineral Resources ("DMR") relating to a fire incident on a dump truck which was extinguished without injury just inside the portal to the decline. The instructions issued by the DMR include a request for an "external ventilation audit team to inspect the mine for smoke and other gases".
Southern African diamond mining, development and exploration company DiamondCorp said a revised production ramp up announced in August has been further revised in light of tonnage constraints encountered during September, which are now likely to continue until at least the end of the current year.
DiamondCorp, the Southern African diamond mining, development and exploration company, has announced that it has sold a total of 7,121 carats (cts) of diamonds from the Lace diamond mine in the Free State province of South Africa in the current three month period through a combination of direct sales and competitive tender, earning total revenues of $782,455. The company sold 4,863 cts of diamonds recovered from kimberlite mining and 2,258 carats of diamonds from tailings production and fine diamonds less than 1.25 mm.
We’ve got a mine, we’ve got grade, we’ve got the carat value and we’ve got $1.5bn of diamonds in the ground to be mined in the next few years. To date, the amount of kimberlite that’s been mined and processed in ramp-up is really only equivalent to one month’s worth of production of ore from the first block. But already we’ve had a 22 carat stone and lots of plus-eight carat stones. It’s only a matter of time before we pull in a 50 carat stone or a 90 carat stone. It’s a numbers game because we know they’re there.
DiamondCorp, a UK-based emerging diamond producer whose primary asset in South Africa is the Lace Diamond Mine located some 200 kilometres south-west of Johannesburg, has reported a reduction in operating losses for the six month period ended 30 June 2016 as compared to the same period in 2015.
Southern African diamond mining company DiamondCorp said its diamond sales schedule has been revised to start in Antwerp at the end of this month and then continue monthly for the rest of the year. In a project update on activities at the Lace diamond mine in the Free State Province of South Africa, it said that production from the first mining block on the 310m underground level at the Lace mine successfully restarted last month and is proceeding at the planned rate of 30,000 tons per month.
DiamondCorp reports said that the South Africa Department of Mineral Resources (DMR) has given permission for an immediate resumption of underground mining operations at the Lace diamond mine, which have now commenced. The diamond mining, development and exploration company stopped operations on July 18 to have miners’ assistants undertake refresher training after an incident in a development tunnel on the 310 m level. Following an investigation, the DMR ordered all miners’ assistants to undertake refresher training in the handling and charging up of explosives.
DiamondCorp reported that two run-of-mine parcels of diamonds which would have formed part of a larger diamond tender in Antwerp scheduled to commence at the end of this month have been sold to South African diamantaires when the company's reserve prices were exceeded during the South African export process. The two parcels comprised 1,838 carats of run-of-mine kimberlite diamonds and 1,679 carats of tailings diamonds, and were sold for an average of $189 per carat and $53 per carat, respectively. Total proceeds received from the sale were almost $440,000.
DiamondCorp (Southern African) reports that it has earned substantial sales on a beneficiation diamond from the Lace diamond mine in the Free State province of South Africa, revealing the upside to cutting, polishing and selling its own high quality stones. The 22.1 carat H coloured diamond sold to the Company's beneficiation joint venture in January this year has been manufactured into two high quality diamonds - a 7.2 carat F colored VVS2 emerald cut diamond and a 0.9 carat E colored VS1 pear shaped diamond. The two polished stones have been sold for a total of US$261,361.
DiamondCorp says a new study shows a 16% rise in the estimated total resource at its Lace mine of 38.48 million tones. However, the study went to a depth of 920 meters compared with 855 meters in the previous study in March 2012 at its 74%-owned operation in South Africa. CEO Paul Loudon said, “This confirms the potential for high operating margins increasing with depth which was one of the factors which attracted us to the project from the outset.
"The world’s two biggest diamond miners just sold $1 billion worth of gems and it’s making smaller rivals nervous," write Kevin Crowley and Thomas Biesheuvel for Bloomberg Business, and the size of De Beers' ($540m) and Alrosa's ($450m) January sales "far exceeded everyone’s expectations." One concern is that the sales were driven not by consumer demand, but rather by supply cuts last year that led to shortages and lower prices.
Kieron Hodgson, commodities analyst for British corporate stockbroker and investment bank Panmure Gordon, articulates their bullish position on diamond mining stocks and prices for 2016 and beyond.
DiamondCorp today announced that production ramp up has commenced from the Upper K4 Block ("UK4") at the Lace mine, in the Free State Province of South Africa. It is significant milestone for the company, which has thus far has extracted diamonds from tailings or from the material brought to surface during mine development.
DiamondCorp, which operates the Lace mine in South Africa, has raised £4 million ($6 million) from a share placement, the firm said in a statement. The money will be used to "fund production ramp-up through to becoming operationally cashflow positive from Q3 2016." The miner has faced problems at the Lace operation, with drilling being due to problematic ground conditions and consequent cash flow issues.
Diamond mining and exploration company DiamondCorp has announced a likely four-month delay to their underground development at the Lace diamond mine in South Africa as a result of poor ground conditions, but CEO Paul Loudon is "sanguine" that the delay will not amount to a setback.
DiamondCorp’s reports that the first diamond sale from its Lace mine in the Free State in South Africa is due to take place in October when it expects to have enough material to produce a representative parcel of diamonds. The sale result together with controlled bulk test results will give the firm enough data to enable it to release an updated resource statement, the company said in a statement.