News blog
DiamondCorp
- BY: Andrew Hore |
- POSTED: 05/10/2009 |
DiamondCorp is in discussions with a potential bidder.
The diamond miner says that the talks are still at an early stage. The company’s Lace mine in South Africa is currently maintained on a care and maintenance basis. A feasibility study on the Lace mine suggests that it would achieve a decent return over a 25 year mine life. Management is looking at ways of financing the mine and the bid talks may be as a result of this.
Revenues slumped from £579,000 to £67,000 in the first half of 2009. Lower admin expenses and a £427,000 foreign exchange gain meant that the loss was reduced from £1.36m to £974,000.
DiamondCorp has gone from a positive cash position to net debt of £2.57m in the past 12 months. This is due to investment in exploration and development of the Lace mine. There is an interest payment of $300,000 due on 14 October 2009. There is not enough cash in the bank to make this payment but management believes it will be able to meet the commitment.
At 19p a share, up 0.5p on the day, DiamondCorp is valued at £7.05m.
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