NML is due its interrim results now, last year it was the 28th of this month.

They are setting up a new site to explore/research/analyse and all the equipment to do this should be on site now, and drilling should start soon, all this extra news should be covered in the interims.

does anyone have any further positive views on this company ??

nice find dynamite. looks exceptionally undervalued relative to its potential. my student pennies have just gone through! will put this in my back pocket for a while.cheers. tristan

I hope it comes good for all of us. Good Luck
Di

Interesting to see such a vibrant NML thread here, but I think a few things need claryfying.

NML were DUE to start mining April 2004, but that date proved to be too optimistic, and was passed without even the equipment being purchased.

Management were changed, and the project restarted, with (seemingly) more realistic deadlines.

In July a member of the company (Shane Healy) stated that they would "hit the ground running, and be mining in September." Equipment was purchased, and shipped from Kimberley, S.Africa to Angola, where due to some mishaps, it remained in the docks for a period of weeks.

It was finally shipped across Angola and was onsite just before the onset of the rainy season. Sadly, the company had no idea how severe that rain was, and have pretty much been bogged down since, unable to commence mining, and restricted in the trenching and sampling, with so far only one area out of five completed.

In order to obtain the required mining permit from the Governament of Angola, NML have to produce a parcel of 5000 carats, and present to Endiama, the Angolan diamond company.

Until this permit is obtained, NML cannot sell any diamonds, nor therefore receive any revenue.

Several placings have already transpired, and IMHO if NML do not commence exploitation mining (ie having obtained the mining permit) by April, they may have to seek further funds, possibly via a further placing.

It does seem that there is a large overhang with NML, and every rise into strength is accompanied by large sells, and until this overhang is clear, I cannot see how the price can rise above the current trading range personally.

NML may well come good in the end, but I am not convinced the price will not fall further before expoitation and given the current cash situation, I am waiting to see if a discounted placing will take place before committing any funds.

Andy.

Good post, lets hope they will learn from past mistakes.

Andy, I haven't found anywhere that says they have to give Endiama 5000 carats but I do know that NML have a close relationship with them. Basically NML just need to get mining. I understand they are stating a certain resource of 188,000 carats and inferred resources of 3.79 million carats (and in the Final Results 2003, inferred resource of 8.7 m). 5000 carats is nothing when you think NML are estimating mining many more than 5000 carats each month.
We all need to do 'a stop the rain dance' ;-) then they can get drilling.
DYOR
Di

aldwick,

Thanks, trying to add sme balance.

Dynamite,

They don't have to "give" Endiama 5000 carats, simply produce them in one parcel to prove their competancy as miners. Currently, all diamonds recovered to date are stored in a dual key controlled safe, one key held by NML, the other by Endiama.

NML currently do not have a mining permit, and need to complete this initial parcel before they can obtain it, and commence revenue generating mining. Endiama are controlled by the Angolan Government, who issue the mining permits.

Once they have done this, NML will be able to sell this parcel and gain the revenue generated by it, of which 54% pertains to NML. As I understand it, they cannot sell any of this parcel until it is complete.

5000 carats may seem like "nothing", but they have yet to complete the parcel, and have been onsite since mid September, although this period includes site construction. During this time they have been trenching and sampling, and have announced some decent stones, but not their progress so far.

By NML's own admission, they have underestimated the weather, and this monsoon type rain has hindered their progress so far, and is referred to in the latest RNS, where they state mining is due to commence in March, "weather permitting".

With regard to resources indicated and inferred, I would refer you to the table link below, which is from NML's own website, and in particular at the "risk" values shown.

http://www.new-millennium.com.au/ang_resources.php

Andy...There isn't any table showing, perhaps you can try again.
I would love to know how much of the 5000 cartas they have found so far.
Thanks for your imput.
Di

It will be interesting to see what happens to the share price once they have the 5000 carats.

Whoooooooooooooooooooooooooosh I should think

Sort of carat and stick approach you might say!

LOL

Dynamite.

There is a post for you on the NOP thread.

Aldwick there's a post for you on NOP now :-)

Hi folks,

Would love your input on a new thread I've just started on FDC.

Thanks, in anticipation of learned response.

Dynmite,

Sorry table not working for some reason.

Cut and paste this link into your brower, the table is at the bottom of the page;

http://www.new-millennium.com.au/ang_resources.php

Andy,

Very interesting; although in some areas NML are only looking at 20% success rate they are looking at huge profits and of course their success rates are very conservative so the profits could well be higher. They are looking at profits of 300m US $. The sooner mining starts the better.
Di

Dynamite,

Yes we have to hope that the commencement of mining date doesn't "slip" yet again!

A poster on ADVFN actually states that the WORST of the rains are in March and April, which is of some concern, given that they are waiting for the weather to abate before starting!

I am not convinced they wil be able to start in March, and they have to work up to full production, so I think April or May will be the earliest time they will complete the 5000 carat parcel, in my personal opinion.

Another possible longer term concern is that if they couldn't overcome the weather and mine from Sep 2004 to, say March 2005, how will they fare next year?


I'm not sure how much you have studied NML, but only 54% of the revenue pertains to NML!

And that figure reduces to 34% in the future (3 years I believe) as soon as capex is dealt with, so not all the numbers you see are indicative of possible future actual revenue.

And there are deductions for costs, taxes, labour, etc etc

Andy,

I don't take that much notice of teh stuff they say on ADFVN as they spend most of their time slagging everything/one off.

I had realised that only 54% of revenue goes to NML...they are very up front about this on their webiste. Do you hold any shares in NML yourself Andy?
Di