edited by moneyam

What a difference 7.5 years and a poor exchange rate makes to a market valuation:

From growth company investor a long time ago
23/04/1998 - Bermuda registered Dimension is heading for an Aim listing in early May. The group operates out of South Africa and specialises in the quarrying, processing and fabrication of dimension stone - marble, bowenite (a rare green gemstone) and granite - for the building materials sector. According to the group 'a technical consultant has valued Dimension's reserves and operations at 44.6m'. Up to 8.3m shares, 12% of the share capital, will be placed at 30p per share to raise 2.1m net of expenses. A 1 for 5 warrant is also attached. The issue is partially underwritten up to the minimum amount and the group expect to be capitalised at around 20m. Nomad is Grant Thornton and broker is I A Pritchard.

A history of how dimension has ended up in its current position from an original 30p floation is summarized quite well below:

Dimension Resources Ltd.
Report updated: 2nd July 2005
A group of entrepreneurs, with the requisite expertise, wants to start quarrying in South Africa. They of course establish their business in the obvious place, Bermuda; and as the next obvious step go to the Isle of Man where they succeed in arranging to purchase, for some 15 million, a company which owns a modern and well equipped stone tile cutting and polishing factory about 300km north of Cape Town. The consideration was satisfied entirely by the issue of 49 million ordinary shares, accepted at 30p per share. In a previous transaction, Dimension had issued some 9 million shares at 15p to raise 1.3 million, and advanced the net sum to the company which it was later to acquire, the purpose of the injection to secure quarrying and processing equipment, further extractable resources, and working capital. It was intended that the main initial activity of the company was the carrying on of quarrying processing, fabrication and sale of marble, bowenite and granite; the first two products are based at the companys processing plant, said to be substantially automated and producing tiles and larger strip materials to customer specifications; the granite was meant initially be sold in blocks pre a further investment to establish a separate processing plant. The technical consultants report was reassuring in respect of both the quality and volume of the resources; his valuation of 45 million was a useful counterweight to the 1.5 million loss recorded by the companys newly acquired subsidiary between 1995 and 1997. The stone was largely earmarked for the Far East, but the sudden crisis, which then gripped the region, caused market to shrink and prices to fall. Declining to sip this witch's brew, the Dimension board mothballed the quarry and sought marble supplies instead. This exercise was only partly satisfactory, but the company busied itself in other ways, notably by way of a five-year contract to provide red granite to Taiwan, total value $16 million. The original 30p share offering was packaged into a 150p unit which contained 5 shares and has a hoped-for sweetener of a warrant which was exerciseable at 30p per share on 1st December 1998, 40p on the equivalent 1999 date and 50p on 1st December 2000. Since this is now academic, post a capital reorganisation to reflect the fact that the share price dropped below its nominal value, another 1 million was raised at 6p per share in April 2000. The purpose was to finance the Taiwan contract, although Far Eastern recovery is stirring hopes of a restoration of the original prospects of exploitation of the considerable reserves - assuming that the architectural fashion for the use of Dimension stone is still running strongly. The accounts for December 1999 showed a pre-tax loss of 447,000, but an ungeared balance sheet, the finances buttressed of course by the post balance sheet issue. By the time of the June 2000 interim accounts, the loss was shaved to 141,000, and the Chairman was stressing that the granite contract alone was capable of returning the group to profit. Well, it might have done had disputes not ended it. But with two new contracts, and two quarries now commissioned, the company was motoring again. Alas, the commissioning costs engendered a thumping December 2000 loss. Meanwhile, the trading history has driven the share price inexorably down. In June 2001,the vastly experienced Chairman, Brian Moritz, bought 500,000 shares to bring his holding up to 2.2% Interim results for the six months ended June 2001 which followed, showed an operating loss of 160,459, compared to the 146, 548 for the same period of the previous year, on turnover of 139,267 against 102,419. The company has always seemed to be on the brink of commercial success as its sumptuous assets stream into the world market, but has constantly been frustrated by this or that; and now needed a bit more money, which it was planning to raise in penny-ante form. For the cynically minded, an October 2001 announcement of an exclusive contract with a leading Italian stone company for the sale the company's "Cape Rainbow" granite, probably meant that the mooted capital raising was imminent, and lo, 225, 000 was raised at 1p per share on the first day of November. The company, its share price then ebbing close to the point of invisibility, spent 125,000 on a black granite quarry, same amount being payable when certain production targets are met. Come July 2002, and its more of the same, we are afraid. Preliminary results for 2001 showed a loss of 429,836, not at all far from the prior year figure of 487,471, although, said Mr Moritz, the trend is towards an improvement in trading. As yet, no revenues as yet had shown from the contract with the Italians whilst the aforementioned January acquisition is conditional on the transfer of a valid mining licence, as yet not received although it, like the improvement, remains imminent. A similar situation can be found in Vrendendal, South Africa, where the company has agreed to purchase a marble deposit, conditional on the receipt of a mining licence. Meanwhile the factory in Vrendendal, lacking a suitable source of marble, would be standing idle were it not cutting floor tiles for the extension to Cape Town airport. The company lost just over 100,000 in the six months to June 2002. However, for the brave, a statement that things are on the up, and that projected sales of bowenite alone will usher in the long awaited black ink, will be a buy signal. But if they were, it was the wrong signal as the December 2002 figures - produced in June 2003 - illustrated, another 300,000 loss. But die-hards will seize on to the fact that the debt-free group has no demand problems, only those of production, and the fact that the widening gap between the rand and the dollar has been responsible for much of the most recent losses. In August 2003 300,000 was raised at 0.5p per share. The June interim figures which followed showed a 65,000 loss. By December 2003 the placing of 33 million more shares at 0.5p raised 165,000. It was June 2004 before the 2003 loss, 500,000, was slipped across the table to the waiting shareholders; August before a distress flare went up, as production was first disrupted then adversely affected by the strength of the rand. Urgent paring was coupled with the urgent quest for new capital. But what we got instead was the cessation of African operations, crushed between the dollar and the rand.

http://www.amreview.co.uk/index.php?theAction=show_compdetails_ext&compid=97&cotw=0&niotw=0&market=1

MAM
do you really want this Sulain/Sue Helen (util the pips squeek) cluttering up your

bb with this inane spam- July 2005???

do sort out -pleaSE?

.

Boo........

Sue
AWAY again untill fri,so look after these!!

BLUE soon

No probs Capetown....u have a good week.

The AIM article I posted earlier confirms my calculation of losses to date of around 2.1m, but I have not included the losses of the original subsidiary acquired of a further 1.5m.

So we have total available losses of about 3.6m, which would last three and a
half years if the new company to be injected is making 1m per year.

A price of one penny, valuing dmr at 1.97m now seems ridiculously cheap for the bundle.

daz , if that silly cow thinks I'm you then she's even thicker than I've given it credit for.

Made Carmarthen but we lost !

Dil,

The lack of football knowledge is clearly evident!

Stop crying Andy....if you can post nuisance comments on my thread...why can't do the same on yours.....You got too big headed and was acting quite big than the rest weren't you on the back of other people.

I'm writing a feature on pump and dump - would welcome contributions here

Hey SueHelen - have I the honour of having been unfiltered by you? How flattering!

Dil/wfcbarmyarmy/dilcraper/brianflynn et al.

I had the pleasue of freezing my nuts off yesterday whilst watching a rag bag of a football side getting outplayed by some cockney bastards.

You don't fool me Dil with all your fancy usernames you scrote.

lol

Gausie

Let me reassure you that it was not one bit funny.
It was effing desperate I can tell you.

At this rate we will be lucky not to be relegated to the Vauxhall bloody conference.

Such humour and such acts of desperation by Gausie................as long we don't disappear right Gausie when all the news is out over the coming weeks.

"as long we don't disappear right Gausie when all the news is out over the coming weeks. "

I cant respond to this - I dont understand what you're trying to say. Have you google-translated it from your native Martian tongue?

I think Suehelen is on drugs by the way.

I think the dish-towel fell over his eyes while typing,