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 ??

Maybe the idea SD is that the workers get their wages and the directors have to wait until they start making money. After all the workers only earnt 32K in the whole year!!! What would be really nice is that in their further exploration they find some big diamonds and then make a share issue as that would do wonders for the price:-)

The directors have been helping themselves to shares in lieu of pay according to the accounts at Aus10c a share which is pretty much the bid price of UK4p. Bet the workers don't have that option.

Yes, a few yellow rocks at $10k each would be great news.

Di,

To be fair, their RNs in mid December said they would commence in March, "weather permitting", and now it is June.

In fact in the last year, they have postponed startup from last April (old management) through the "hit the ground running" in September, to year end, then March, and now June. IMHO this is not impressive!

Two of the three sells this morning are at 3.5p, so hold and wait may indeed be better than selling at such a low price IMO.

I strongly believe they will have a placing at 2.5 - 3p maximum.


Stockdog,

I'm not sure they have done any work on their kimberlite yet, so I don't think they can possibly know a grade for it.

Their resources in Angola can be viewed here;

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


I don't trade my Firestone at all, only add, as I consider them to be a strong long term hold.

I MAY trade between EPD and NML, provided current timescales are adhered to, indeed NML's June announcement today should in fact ensure that I can cross trade between EPD if they start in April/May, and NML if they start in June.

Directors taking shares in lieue of pay means that they can sell in the market to realise the cash, so not quite as good a sign as we might think.

I don't think it's a good sign at all that director's who have failed to bring about commencement of trading give themselves access to future profits in lieu of cash salaries. Since it is entirely their own doing, at best they should acquire loan stock with a 10 year gilts coupon.

Is there any real control over how much they take in this way?

NML's website quotes a median grade of 0.627 carats per cubic metre. Now assuming that a cubic metre of rock/soil/kimberlite has a similar specific gravity to water, a cubic metre (which is 1000 litres) wieghs 1000 kg which is a tonne, so its about 0.627 carats per tonne - probably slightly less since we know rocks sink and are therefore heavier than water, thus a cubic metre weiights more than a tonne, so there are 0.627 carats in more than a tonne, in other words less than 0.627 carats in a tonne - let's say about 0.60 carats per tonne - so slightly less than the Satellite and nearly 4 times the Main Pipe in EPD. Please feel free to check my maths - factors of 1,000 can be damn tricky, Carruthers.

Interesting pair of stocks to measure each other by.

SD

Hoy, folk, we seem to have moved to the half-empty brigade. Well, I'm a half full sort of fellow, so here's my positive take on the interim report:

First, Note 6 points to a draw down of US$1.25m since year end. There is an underlying assumption that this funding sees them into production.

Second, with regard to production: (a) final exploration activities have commenced; (b) full complement of mining plant and heavy equipment has arrived on site; (c) base camp has been established and infrastructure including roads and bridges have been built in preparation for production; (d) the project will move from exploration phase to production phase by June; (e) by June the Company will be in a position to make medium to long term forecasts as to cash flows and profits.

So some good work has been done, lessons have been painfully learnt about the environment, cash is adequate to take company into production. Best of all, we will have nice juicy numbers in June that could take sp significantly higher. So what's the problem? If there is a problem, it is also an opportunity!

Eric, TEO

Well eric, if mine's half empty and your's is half full - put 'em together and what have you got - bibbidy bobbidy boo (you know that acutally o=won the Oscar for best song that year - incredible).

We're only having a mild go - but yes, I did overlook that draw down - who from by the way? Anyway it will see them through to production, hopefully to revenue earning as well. How long does it take to sned a diamond to market?

SD

Eric,

Well I not so sure they have sufficient funds, and I think they will need more, particulary as June is now mooted as the start of production.

The assumption they that the $1.25 million will see them through would surely have been made with a March rather than June start in mind?, as that was their declaration at the time. So the money has to stretch 2 -3 months more, and SH told me $150,000 cashburn per month last November, and that will build as production nears.

They have also made capex equipment purchses since then.

Shane Healy was here last couple of weeks, and did the rounds in the city, and that leads me to believe he was looking for funding,but that's only my opinion.

Base camp was elready established last November, I saw the photos.

They have been doing sampling and trenching since last October, and have only reported 1 out of 5 sites as being completed.

It has not been too well received on ADVFN either, I know some large holders there.

Sorry but I cannot see anything to be optimistic about in today's announcement, quite the contrary in fact.

Andy...The ADVFN board is not any more negative than this board. In fact most are saying that the project is sound just a case of when it will commence. If and it is an if there is another placing most people would be happy to get on board and it seems that some of the sells today were actually buys.
Basically the June dat is a setback but nothing more and patience IMHO will be rewarded.
Di

Here is an example of a supposedly negative person on the other side;

'>Crosbie3
Exactly......this is a setback, but it is only temporary. I don't forsee many delays in the dry season.

They should also be able to prepare for the following wet season. I'd be surprised if they didn't take measures, such as redistribute the tailings/gravel as hardcore for the tracks, to give them some firm ground to move on.

I just hope that some of you (the long termers) manage to get in on that placing, to offset the disappointment of the delay. I also wonder if some of the people (in the know) that posted here so regularly, was not taking advantage of advance knowledge to sell his shares and pick up new ones in the placing. He hasn't posted in a while, and whilst I accept that he might be busy, I seem to remember that he was a beneficiary of cheap shares the last time.'

Di,

Well I have posted on that thread for nearly a year, and, IMHO, they are, shall we say, "less than enthusiastic" IMHO!

To analyse the post you quote, with no direspect to the poster Crosbie3, his setback comment was echoed by others in September, November, and early 2005 by others on the thread.

He then goes on to suggest the tailings can be utilised to help create solid ground for moving around on, but is there any basis to this suggestion? would it work? Is movement the problem?

At best he is hoping, suggesting, but unless he has any experience of alluvial mining in an area similar, that is all it is.

with regard to the trades, andything above 4p is indeed a buy, IMHO, I was quoted 4.25p to buy earlier, when the offer was 5p on the monitor!

Of course, you wonder why you can buy at such a discount to the advertised offer, I have never before been offered such a discount to the advertised price.

Some suggestions on the other side seem to indicate a placing is already underway, and if these are correct, I wonder at what price?

Di,

Interesting, Commdirect are now quoting 4 - 4.13, so it's actually cheaper to buy now rather then this morning!

To be fair, the bid is now much better (0.5p) than this morning, so you can achieve a much better sell price.

Helpful posts. I accept the likelihood of a further placing; it would probably be irresponsible not to to that as the monthly cash burn would make it too close for comfort. Also explains the drop in price during Healy visit. 4p would appear to be a likely price.

But I think it is wrong to discount the current activities, described as 'final exploration activities'. One result is that, by June, the company will be 'in a position to make medium to long term forecasts as to cash flows and profits.' I can't see other than making the present cap. look mighty low.

Eric

When we get to end June and the first little sparklers are winging their way to de Beers vaults there will be a big reaction in the shares, how sustained who knows, but it'll be big on the day.

If they raise cash, whioch would not surprise me, I'd say they would go for something like Aus$1.25 to double what they have already to give them a 12 month burn from 31st December on straight operating costs, reduced to 6-9 months by the heavier cash burden of final gearing up for mining. Priced at 3.50p, that's Aus8.75c = 14,285,714m shares added to 160,240,000 in issue today at a mid price of 4.50p, makes a total of 174,525,714m shares at an average of 4.418p - hardly a major dilution in value for existing holders given that it gets them to the payload.

The shame is, the need for certainty about raising the full amount will preclude any rights offer to existing holders and it willgo to lucky placees as usual.

SD

SD: helpful figures that are much better than my back of envelope stuff. 10%, say, placing is hardly near or there and not worth a rights issue. Something like the SEO placing and less than that of GMC, say. MLS did include a rights component in a larger fund-raising but that was only 1 for 10 and hardly worth the bother. As with the other instances, the placing gives a support level and at this level is really a benefit, apart from the confidence that it gives: (a) they can complete the task; (b) financial institutions, party to behind the veil detail, have provided their backing on a risk basis.

Eric

Another recent fund-raising for exactly thed same purpose - delayed commissioning of plant, cash needed to get to full production was BFC recently who did make part of it a rights issue at a nice discount - good for them (and for me of course!)

Of course, it's probably v. expensive to include small shareholders in the fun, but it would be nice.

SD

By gum! I hope he raised the funds alright because the falling sp makes the number of shares required for a given sum higher all the time. What fun, sd? we are talking about hard smackers and not tickle tums!

Eric

stockdog,

Why not ring NML and ask them to be put on the placing list?

You may well be lucky!

Did anyone spot this little clause in the interims?
-----------------------------------------------------

In the event that a successful take over of the Company or a change in the
control of the company occurs, the employment contracts with John Cross and
Shane Healy will immediately terminate and the Company will pay out the balance
of any remuneration payable under both contracts up to and including 19 April
2007. As at 31 December 2004, the Company has remuneration commitments of
$936,700 payable to both executive directors.

Eric, SD and Andy...this is a share where you need guts to stay in the game butIMHO I feel you will be hugely rewarded if you do. If I had some spare cash I would buy more at these prices and I know people who have done just this.

Everyone has moaned about the mangement and delay; so will it be a huge problem if a big company like De Beers puts in new management etc. The remuneration that John Cross and Shane Healy would get is small compared to their effort and determination to find diamonds. In my mind if they are taken over they deserve the termination fee and it will make no different to shareholders as a takeover will rocket the share price.
Di

Now sit back and wait for those lovely diamonds...I wmight buy one with the profits if it makes enough money :-)

New Millennium Resources Ltd
04 April 2005




New Millennium Resources Limited
('NML' or the 'Company')

Production Commences

Diamond Production Commenced 2nd April 2005

Mine setup completed

Mine passes government inspection

Second production site exploration identified

New Millennium Resources Limited (NML), the international diamond mining and
exploration company, today announces that diamond mining production has
commenced on its Rio Lapi mine in Lunda Sul province of Angola. Commencement
followed mine inspection by Endiama, the state owned diamond monopoly.
Representatives from the appropriate government authorities were required to
inspect the mine to ensure that working conditions, safety, health and hygiene
complied with government standards, prior to production commencing. This was
carried out over Wednesday and Thursday last week (30th & 31st March 05). The
final authority to commence mining was given late Friday and production
commenced Saturday 2nd April 2005 at 07:00 Angolan time.

The Managing Director, John Cross said today, 'We are exceedingly pleased to
announce the commencement of production. This is a great achievement for the
Company and an achievement which should be put into perspective. In the past 12
months the Company has purchased a full suite of alluvial diamond mining
equipment and transported all equipment on to the minesite at Rio Lapi from
Kimberley in RSA. The Company has sourced and employed experienced and
competent Mine Managers and mine workers, built over 80 km of road, several
bridges and set up a fully operational mining camp. The Company is amongst the
most advanced of the new breed of diamond miners in Angola.

The second and final shipment of plant and equipment arrived on site on Easter
Sunday. This plant has now been assembled and set up. All equipment has been
serviced and is in good working order after its long journey from the Kimberley
in RSA. The mine is now fully supplied with bulk fuel and provisions together
with mine infrastructure such as satellite telephones, e-mail and fax
communications. Total number of staff engaged on Rio Lapi operation is now 52
people.

The mine now has at least one backup unit for every piece of equipment and plant
at the mine. This provides insurance against the effects of breakdowns.
Strengthening of the extent of plant also allows for continuous exploration
whilst not hindering production.

Endiama has recently furnished the project with prospecting data gathered in the
late 1970s by DIAMANG. This data shows testing results at 62 carats per 100
tons. This rich area is in the Bilo region of our concession on the Rio Luo and
its tributaries. Now that production has commenced a prospecting team will be
sent into the area to set a site for future production. Should the exploration
prove up as rich as indicated a second plant will be set up on that site, thus
providing the possibility of doubling production.


Contact:

New Millennium Resources NL

John M. Cross (Managing Director)
Tel: +61 414 375 758 Tel:

jcross@new-millennium.com.au

Shane M. Healy (Finance Director)
Tel: +61 414 809 010

shealy@new-millennium.com.au

Daniel Stewart & Company Plc

Alex Davies
Tel: +44 (0)207 374 6789

St. Swithins PR

Gary Middleton
Tel: +44 (0)795 160 3289

This information is provided by RNS
The company news service from the London Stock Exchange

To all you doubters of NML...please note that NML have at least one back up piece of equipment for every piece needed. Endiama have confirmed 62 carats per 100 tons. Plus NML have just gone through one of the worse winters in a jolly long time. Everything is now in place for mining in one of the richest diamond areas of the world. The dry season is here and NML are prepared for next winter.
Di