HPC Follower
16 Feb 2015
Re: dealings I think we should assume that the November sales didn't bring in any exceptional amounts of extra money. The value should, however, appear in the total sales for the quarter in which the sales are recognised on the balance sheet - which is likely to be when the money is actually received and the diamonds are delivered.
scholomo
16 Feb 2015
dealings On the LSE site all these dealings except the one for 6000plus are shown as sales.
scholomo
15 Feb 2015
diamond sale What surprises me and bothers me a little is that the company never disclosed the amount it received from the sale of the first tranche of diamonds re the note from the company on the 17th November.
mike5619
13 Feb 2015
Hi All, I purchased shares in Paragon back when it was 3.9 so am waiting with fingers crossed for them to pull some diamonds from the ground, then im sure it will convince any investor to get onboard. So when do we think it will break 10 pence ?
dyfiman
12 Feb 2015
excitement Afternoon all .......sellers seem to have finished at last....(goodbye AT and O trades)................ and we are just weeks away from mining activity starting up in just a fewweeks.Think about it for a minute.......... JUST weeks..... compared, say toa big outfit called EMED that is reviving the old Rio Tinto minein Adalusia, Spain.Emed began it's quest to mine copper around TEN (!) years ago...... andthey are still only about halfway through preparing the iconic site forproduction. Ten years ! I know as I've been a shareholder for most ofthat time.So PRG holders should be chuckling.... while rubbing hands gleefullydue to this opportunity opening up. No guarantees, I know,but I shall be buying again tomorrow !!!!Good luck all.END
dyfiman
12 Feb 2015
Beaufort 3 Paragon’s 80% subsidiary (20% Government of Lesotho) holds a mining lease forthe Lemphane project for ten years from February 2014 and is extendable for a further thirty years. There is an initial royalty of 4% that will be payable to the Government on the commencement of production and is subject to review within five years. ITGT will subscribe for 98m shares in Paragon at a price of 5.5p per share, raising $8.09m. Paragon will also issue a $4m secured loan note to ITGT. This note will have a three year term and a 10% per annum coupon payable annually.The Diamond MarketDemandManagement believe global demand for diamonds is expected to exceed growth in supply for a number of years to come. On the demand side, over the next ten years high jewellery demand is expected to grow at a compound annual rate of 6% driven by increased demand from China and India. As well as traditional demand for diamonds for use in jewellery, management believe there is significant potential for diamonds to emerge as an investment asset class providing investors with an alternative store of wealth to gold. Global wealth is estimated by Credit Suisse to increase by 40% to $369tr from $263tr over the next five years, equivalent to a CAGR of 7%. At the macro level, this large increase in wealth will drive increased consumer demand for diamond bearing jewellery that will in turn drive demand for rough stones. Emerging markets are likely to see diamond demand continue to grow at a pace that outstrips those of the established markets with the expansion of the middle classes as the countries move from producer to consumer societies. Forecast CAGR for rough and diamond jewellery demand is expected to grow between 4.7%and 6.4%.** ** Bain & Company Inc, Rio Tinto, Bank of America Merrill Lynch, Alrosa and De Beers SupplyBased on the range of forecasts (Bain & Company Inc, Rio Tinto, Bank of America Merrill Lynch) and McKinsey & Co), diamond supply is likely to continue to increase in the near to medium-term, with a gradual decline over the medium to long-term assuming no new significant discoveries are made.On the supply side, investment in new projects is required to maintain current production levels. Togetherwith “new” production increasingly coming from underground operations associated with higher costs,and the majority of diamond revenues being generated by a small amount of large diamonds, security of supply is becoming a key price driver in the diamond industry. With no immediate new supplies coming on stream, demand set to rise and strong growth from emerging markets, diamond prices appear well underpinned going forward.ManagementOne of the single most important criteria in selecting investments is the management. The Executive Chairman is an impressive individual with a desire to see Paragon as a fully integrated and unique Diamond business:
dyfiman
12 Feb 2015
Beaufort part 2 Site clearance for the new plant has been undertaken, and civil construction activities are planned to commence in the coming weeks. Discussions are also well advanced with the national power company's main contractor, for access to the privately funded open-access power line (presently nearing completion) for electrical supply to the mine. Discussions have also been finalised with the providers of camp accommodation and services, and security. Separately, the Company's geological consultants, MSA Group, have been instructed regarding ongoing work on the geological model, to be updated in light of recent, positive drilling results, and concerning updating of the present scoping study to a full feasibility study over the course of Stage 1 mining activity, which will be a work in progress. Stage 1 production will cover a two year period during which approximately 1 Mt of kimberlite will be mined and processed out of the currently estimated 48.6Mt of kimberlite (to 350m depth) at the site, using a 75 tonne per hour processing plant. The Company is targeting 20,000 carats during Stage 1 production with an estimated minimum value of US$930 per carat that is expected to generate revenues in excess of US$9m per annum. Cash flow will be reinvested to further develop Lemphane and complete a bankable feasibility study, a 3D geological model and a substantial inferred resource ahead of commencing the Stage 2 production phase. Stage 2 will see production ramped up to 3Mt/year with peak production expected to hit 65,000 carats per year of high value diamonds. The company estimate $1,500 per carat. It is the intention of the Company to become a fully integrated diamond company maximizing the margins gained from being exposed from the mining to selling of diamonds.Lemphane, LesothoThe Lemphane project is the last undeveloped commercial diamond bearing kimberlite pipe known inLesotho. Producing mines within Lesotho currently include Gem Diamonds’ (GEM.L) Letšeng Mine andNamakwa Diamonds’ (private) Kao. Firestone Diamonds (FDI.L) is currently developing a commercial mine at Liqhobong and Lucara Diamond Corp.’s (LUC.TSX). See map below. Mothae project has been put up for sale. Paragon, by virtue of ‘following’ the early developers, can piggy-back into the existing infrastructure, with spurs to their mine for final connections and delivery. Location of diamond bearing kimberlite pipes in Lesotho
dyfiman
12 Feb 2015
Beaufort analysis prg PART 1Emerging Diamond ProducerWith Polished UpsideFully FundedParagon Diamonds will own 80% of the Lemphane kimberlite pipe project located in Lesotho, once production commences. Having raised $12m from a middle east investor,* Paragon is fully funded to mobilise the Lemphane Diamond project to stage 1 production in Q2 2015. This will allow it to determine the grade and average value of diamonds at the project. It will then seek to move the project to Stage 2 production. Stage 1 will involve the extraction of approximately 1 million tonnes of kimberlite over two years and according to an independent report, is expected to lead to the recovery of over 100 diamonds larger than 9 carats, including some stones over 100 carats in size. The design of the plant has been finalised and construction has commenced, including ordering of key long lead time items, ensuring minimal down time between now and the commencement of Stage 1 production. The Investor* has confirmed that it will support Paragon with an additional loan should any suitable opportunities to acquire a proven diamond resource arise. The Company is currently evaluating strategic opportunities within Africa.*The InvestorInternational Triangle General Trading LLC (ITGT)ITGT is a privately owned international investment group, with a focus on construction, automobiles, real estate and banking. ITGT was established in 1991 and is based in Dubai, the wider Middle East and China.Operations UpdateDesign work has been concluded on the planned 75tph (0.5Mt/yr) process plant for Stage 1 Production at Lemphane, metallurgical test work is being concluded, and long-lead-time item procurement has been undertaken ahead of fabrication of the main plant components. Long lead-time items include scrubbers, crushers, x-ray transmission recovery machines and water recovery thickeners. The Company has also finalized provisional tailings storage facilities (TSF) designs with its civil engineers, and the terms for contract mining for Stage 1.Share price performanceSource: London Stock ExchangeKey DataNo. of shares: 276m Mkt. cap: £15.4m Website: paragondiamonds.com AnalystHarry Stevenson (t) +44 (0) 207 382 8384 (e) [email protected]
swooped
12 Feb 2015
Another BUY note issued americanbankingnews.com/2015/02/12/paragon-diamondss-speculative-buy-rating-reiterated-at-beaufort-securities-prg/Here is the actual note-paragondiamonds.com/cms/uploads/files/6f3b6405a3bf07bba666f1158d7430ec.pdf
dyfiman
12 Feb 2015
price rise...... PRG up 9% now on sells totalling around 138K........ after a dead morning.At 6p on the ask, will the buyers return ?? Several articles in thelast few days on how the Diamond industry has been perking upafter a slowdown in the couple of months to Xmas.About time this share took a decent jump into the mid- 7's..... just for starters !!Get your hands in your pockets and shell out for a few more shares !END
scholomo
11 Feb 2015
very weird All sales since 1pm today.Stranger still is that there are seventeen sales of 50000 lots.and yet the Sp hardly moves.All beyond my small mind.
dyfiman
09 Feb 2015
Re: wierd.... Hello Mr Plectrum...........have much experience of watching MM's 'bouncing' a share around and it's a pain inthe proverbial.........Re PRG....... agreed it's speculative, but must say there's hardly a share outthere that's nailed on so we go with what we have.PRG though, to me, seems to have a lot of the key things need for a double-your-moneyride and that's why I'll reluctantly stay in.Good to read your post and best of luck in your investment.Dyfi.END
Guitarsolo
09 Feb 2015
Re: wierd.... Dear All,Few AIM shares are logically valued, at least at this stage of their life. The market makers love to bounce the price up and down to shake investors in or out and allow them to make their cut. I don't think this share will alter significantly in price for another 4-6 months, at least until there is some significant success in finding stones or gems. So, if you're invested for the long run as I am, sit tight and wait. Eventually, if PRG is successful in finding diamonds and particularly high-value gems then the share price will move. Until then, comfort yourself with the knowledge that PRG owns a good license in a cracking kimberlite, has good quality funding in place to allow for phase 1 harvesting (after that it should be producing income to allow for phase 2), has a top-quality management and has invested in the best equipment possible. As AIM investments go, this is a good one. But it is still speculative. I put the prospects of this being a 10-bagger at around 10%......a five bagger at 20%.....or a double your money at 33%. For 6% of my portfolio I think these are reasonable odds given that 80% is tied up in boring, high-yield blue chips. Only my point of view!Guitarsolo
dyfiman
09 Feb 2015
Re: wierd.... Point taken, Mr Scholomo,though I might say, again, that such fears about perhaps not finding diamonds werealso applicable when the share price was lurking for so long around the 6pmark..... a time BEFORE the financing was achieved.Yet there was a big scramble to buy over a few weeks.Hence my "Weird" comment. And I stress again we are only a few weeks from the machinerybiting into rock and dirt out there in Lesotho.Ho Hum !!!!Rgds.
scholomo
09 Feb 2015
Re: wierd.... I am just as frustrated as you re the SP.However what we have to remember above and beyond the funding and super man at the helm is that this is still a gamble.Stones stll have to be puuled out of the ground.I honestly believe private inveators are much more catious nowdays as compared to a few years ago.So many have been stung badly by mining shares that promised so much and have not delivered that they are waiting on the sidelines to see what occurs when mining commences.
