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 ??

Eric
Production will not be 10000 carats straight away, but will be ramped up
over the first three months.

I concur with your PE of 10 and a market cap. of approx. 50m.

As to a placing, I'm not sure, but would suspect that the chances of this are
very high. We do not know how near to the first 5000 carat parcel NML are and
how quickly these can be realised as income.

Stockdog,

very good!

LOL!

Eric, Filty poor,

The recent RNS mentioned production by June, hence my thoughts re the placement.

I do not expect them to announce they have obtained the mining permit until the end of May.

Andy
Suspect they meant, Full Production (10000 carat) by June. This would tally
with the following RNS.
They should have the initial 5000 carat parcel long before June.
Don't know if they can sell these before the permit is granted, and anyway,
this would be cutting things a bit fine.
Therfore, a placing is likely.
Would prefer a rights issue, but an expensive and drawn-out procedure.

Andy

That RNS was overtaken by the announcement that production had commenced in teh RNS of 4th April. Today's RNS refers to the 'successful prgress to full production. The relationship with Endiama looks 'hand in glove', and I suspect the 5000 carats is a historical commitment. Compared with 10,000 carats a month of proven deposits its hardly a major hurdle. I am with di (virtually not physically!) in treating this as up and running and away into a blue horizon. Now, filthypoor is neither filthy or poor otherwise he wouldn't call himself that, so he must be clean as a whistle and rich beyond our imaginations which means, in turn, that his opinions are sound and worth acting upon!

Eric

Filthy,

NML's RNS announcements seem to raise more questions than they answer IMHO.

That is one of the reasons I am still uneasy about buying NML again.

Eric...sorry I have taken so long to post...here in Essex the children have just broken up for Easter 2 week holiday...we like to be different!!!

I met SD on Friday and have to say he seems a very nice doggy...so much so that I did not realise everyone had returned from lunch and that Tom had started speaking about his amazing charting. Still he did not seem to mind when I said I had been busy talking to my doggy!! I looked but SD did not have a diamond collar so NML will just have to reach a pound so I can buy him one and then I shall buy me a huge diamond although I am not sure where I shall put it:-)

Like you Eric I look on the RNS today as good news...more exploration has gotta be good and if there is a share issue I would buy more. My own feeling is that we will get a good announcement about diamonds found instead.
Di :-)

Thanks for the update, di; I had got a bit concerned, and possibly jealous, about the silence re Friday! You never know with these dogs; always putting their nose where they shouldn't oughter! What variety do you see him as - seems to be long and therefore may be a daschund; seems to visit every tree and share so must be a terrier; gets to places others cannot get to which suggests a Jack Russell.

I like all the facts about Angola. OK they want to swell their own coffers and why not; but it is a win/win situation with the Endiama 51% holding. All this talk about 5000 carat hurdles to climb and it is in the interest of Endiama to see it work. Moreover NML have built all these roads which will help their infrastructure for various other reasons. Finally, I see the Aussie thing as positive because they get things done and are used to outbacks, prisons and that sort of thing, so the fact that the city doesn't trust them is really rather good because it has kept the bulls at bay until they see proven figures. I reckon its 95% full whereas others are concentrating on the 5% empty. By the way, do buy back SEO because, if NML are a 10-bagger, SEO are still a 12-bagger. Great for CFDs.

Eric

Andy
I know what you mean, it can be very frustrating decyphering their
cryptic RNS's.
Although todays RNS does raise further questions, I cannot read any
downside into it. The timing for their application does seem a little strange
when they should be concentrating on the Alluvials.
However, could it be that a major has got wind of some impressive alluvial
grades from NML and is keen to tap into the source of these diamonds.
A major may have made a similar application on NML's C9 concession.
De Beers have been aware of the potential of C9's Alluvial and Kimberlite
resources for many years, but are not exactly pals with Endiama, therefore
NML are already at the front of this queue.
Probably, total crap, but may spawn some kind of debate,

Filthy,

I agree, no obvious downside, unless this is being used as news prior to a placing, which if that were the case, could be discounted and dilutive, we shall see.

Re De Beers and Endiama, you may well have a valid point, I believe there was, (possibly still is), friction between the two, and yes If that is the case, I'm sure Endiama would rather work with NML.

This was on Diamond.net

New Millennium Seeks Angola Mining License

By Ketan Tanna Posted: 4/12/2005 8:02 AM

(Rapaport...April 12, 2005) Australia's New Millennium Resources Limited (NML) has made an application for a kimberlite mining license on its Rio Lapi C9 concession in Lunda Sul, Angola.

The application has been made through its wholly owned subsidiary Angola Resources Pty Ltd., in a joint venture with Endiama, the government owned diamond company, and a local partner Mombo Lda.

New Millenniums managing director, John Cross, said that the Rio Lapi C9 concession is in a proven diamond-rich kimberlite area. The concession is adjacent to the Catoca Mining Society's lease and is approximately 12 miles north of the Catoca mine, which is one of the largest diamond mines in the world.

The Catoca mine is currently producing approximately 3 million carats per year and is due to upgrade its production to 6 million carats during the first trimester of 2005.

Now I wonder if Endiama and Angola Resources will be successful in their application. Who is it who grants permission? Oh, look! It's Endiama - what a Di fficult decision. Ho ho.

That's why it is great having Endiama as a partner :-)

An interesting post from the other side;

'On page 31 of the Annual Report it states that the company has a 4,500,000 equity line of credit with Cornell Capital Partners Offshore LP, that was not utilised as of 30 June 2004.

The equity line of credit allows drawdowns of 62,500 at any one time (probably based on $100,000 when drawn up) and does have a number of pre-conditions. The loan is convertible and the share price is determined by the lowest daily market price in the 5 business days following the Company's notice to Cornell (of drawdown).

So the standby is dilutive, but would give the Company a sizeable amount of cash for working capital. It might be cheaper for the Company to arrange one large dilutive issue or placing, to avoid the extra cost of doing it piecemeal.'

As i posted before i know someone who as in his words a massive short on NML, based on the assumption that the Angolan government will rob NML of any diamonds , so will the 5000 carats that are needed to apply for a licence be held in some sort of joint account needing both parties to sign.

What a load of rubbish!
The diamonds will be held in a safe, initially. One key to be held by
Endiama and one to be held by NML.
Endiama have a percentage stake in this project, why would they rob it.

Aldwick I agree with FP...it is in teh interests of Endiama to help NML produce diamonds not hinder.

Filthy poor,

Correct, NML confrmed this at the London meeting.

I don't think anyone seriously expects them to be robbed of the site, that would send out some very negative mesaages from Angola that the Angolan governement would not want sent, I'm sure. (But if they "robbed it", Endiama would have a greater percentage at no extra cost!)

For sure, palms will have to be greased before any licence is forthcoming though, all part of business etiquette in Angola I'm afraid, but this is expected, so shouldn't be a problem.



aldwick,

I cannot imagine anyone having a massive short on NML at this price, with the spread NML would have to go bust for them to realise a decent gain, and any good news would take them out.

I agree , i was just quoting what he told me and i will email your replys and see what he says.

Andy,
Endiama would only have a greater percentage of 5000cts.
There is a measured resource of 188,000 cts with an additional
indicated resource of 3.79Mcts and an inferred resource of 4.8Mcts.
I suspect that Endiama are in for a larger slice of the action, rather than
raid the piggy-bank at this stage.
And, Yes, corruption is the name of the game in Angola, if you need to get
anything done. Infact, this is probably the case, the world over, but to a
lesser extent.