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 ??

Re: Marketmakers,

In an ideal world they do not hold stock on their books, balance them by the end of the day etc etc.

But in practice, and ESPECIALLY on smaller AIM stocks, it is obvious that they do hold stock on their books, and they also go short very frequently if it helps them make money.

This much is obvious from the number of 'Market Maker holdings' declarations you see, and also from debacles such as the 'Room Services' group where EVO went short of twice the entire issued shares or something similar. That was an extreme case of course.

Just had someone get back to me on this theyve been doing a bit of ringing around and the rumour is another placing is on its way but not with the usual suspects for whatever reason.That means the placing is in the last chance saloon bucket shops so expect a low price.

"Not with the usual suspects" could just as easily mean Rab Capital or Gartmore in this case, couldn't it?

mjr1234,

I agree, it IS in their interests to get the mine up and running, just that they themselves haven't actually bought into the company, IMO, they simply had to accept shares in lieu of reumeration due to lack of cash.

I genuinely believe MM's don't hold much stock of anything, and go long or short as the situation dictates.


ASMITH2,

I would be VERY surprised if that rumour were true, personally.
if it were, it would be very bad news for the shareprice, IMO.

City Equities once offered me EPO @ 3.75p, when the offer was 4p.
I checked the news, and surprise surprise, EPO had just done a placing at 2.5p.... to City Equities!

the EPO SP fell to 1p very quickly after that.

You can buy below the mid price again this is going down again..unbelievable!
Time to start ringing directors to start making a nuisance of oneself I think.

ASMITH2,

Yes I just tried, and I can buy @ 3.85p, MID price is 3.88!

Andy,

Its been that way for around a week.

mjr,

Ok thanks.

Suggest Andy should read the web-site [http://www.new-millenium.com.au/ang_resources.php]

The measured resource of Rio Lapi Garimpo is known as 235,000 carats; the recoverable at 80% is 188,100 carats. OK, production consists of sifting the gravel to extract the diamons, but they are already doing that. So I can't see why there should be a placing now or at least until the geological figures are confirmed in actual production; any finance needs must be very short-term indeed so a loan with share inducements would appear the logical route.

If the negative comments above are typical of the rumour market then that is sufficient to explain the bad market in the shares. I accept there is a negative track record. As everyone knows, I'm a cautious sort of bloke (don't ask the Mrs for confirmation) so am just holding what I have - but I'm sure the bold and brave like mjr and dynamite are staching them away, with lol and rofl down the line!

Eric

Ewric,

I read it early last year, but thanks for posting the link, others will find it useful.

With regard to a possible placing / fundraising, it has been several months since the drawdown, and I'm sure they must be running fairly low on funds. Shane Healy was recently in London, meeting institutions, maybe he was also looking to raise some cash?

Whilst they may be mining, they are not currently selling any diamonds, and we don't know their rate of progress, or the average value per carat.

I find it hard to believe they will raise funds via a bucket shop broker, so am discounting it, until any confirmation to the contrary.

andy: I think we are not that far apart in our thinking. The fact that they paid their salaries with shares in lieu shows how tight things are. They seemed to have raises funds in US$ and attitude in London seems negative, perhaps because they are Australians! I accept that the initail production does not produce the revanues and the process is proably complicated with the involvement of the Angolan government. However, you could argue that diamonds are better than cash or will at least assist the raising of cash in an effective way. Because of the evident risk, my holding is at 'half-carat' level! Have not admitted to the Mrs, whose name they are in, as she will expect the diamonds as a divi! Di, di-va that she is, is paying herself a di-vi in di-amonds! Beat that - what's better than one di? - ans 4. Oh, could have added di-lectable!

Eric

The only thing better than me Eric is NML digging up trucks full of diamonds and an RNS saying so...tick tock
:-)

Eric,

I don't think the fact that they are Australians has anything to do with them not being able to raise funds in the city, I would look at management's (thus far) failure to deliver. Afterall, the city is the premier world market for international fundraising for mining finance.

Good point about diamonds and cash,which will come first?

To be honest, I had expected them to put out an RNS saying mining in full production, then the price shoots up, to say, 7p, then they do a placing at a higher price. Now I'm not sure what will happen first.

Petra are presenting at Minesite next week, so we MAY glean some information from them re mining in Angola.

OFF TOPIC.

If you really like the dimaond sector, you may like to take a look at FDI, and in particular their RNS from last Friday!

No 10 bagger claims, but FDI have (IMHO) an excellent portfolio of prospects in Namaqualand, SA, and Botswana, as well as some new ones in USA.

A long term growth story IMO.

Thanks, andy. FDI is on my watch list but one diamond stock is enough; I essentially went for NML because of the extremeley low cap. and the potential for an n-bagger, whatever that might be. I have 4 such stocks: if one comes off big time that will be great; if 2 ...; if 3....; if 4... A case of escalating nirvana!

Seems that we are both watching the situation from the same perspective, wondering what the outcome will be. The positive dream, as di says, is counting those trucks digging up loads of diamonds. Do we know anybody in Angola?

Eric

Eric,

Well we may do after Tuesday as Petra Diamonds are presenting in London, and they are mining 11 miles from NML in Angola.

If I hear anything useful, I will post it Tuesday night.

And guess what surprise surprise you can buy below the mid price again talk about disasters!!
It will be 3.38p next to buy...lol.!

You reckon VV? Or you just hoping?

mjr1234 - What does VV stand for please? Thanks.

ASMITH2,

Double bottom.