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CRD, CROWN DIAMONDS NL
cab
post Posted: Apr 18 2005, 04:44 PM
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In reply to: trisail on Thursday 17/03/05 01:17pm

With the recent falls in most stocks CRD is holding up quite well with an all time high last week and the buy side building with large orders I think we are set for another high. Petras offer of takeover is currently priced around the 29 cent mark and should be finalised any moment now.

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CAB


 
trisail
post Posted: Mar 17 2005, 01:17 PM
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In reply to: legal eagle on Wednesday 02/03/05 09:05am

Technically CRD is looking quite promising..DMI has crossed and ADX is rising, MACD xd and above centre line, and all EMA's are up. Even my fingers are crossed.

 
legal eagle
post Posted: Mar 2 2005, 09:05 AM
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In reply to: ickyrusty on Wednesday 16/02/05 07:47am

Hi Ickyrusty,
Two English brokers have given equivalent pricing of CRD of over .50, especially when allowing increased production in 2005 and 2006.
I had expected more English investors to buy since Petra is suspended and this should be a cheap buying opportunity....it just shows you cannot predict the market.
I am still holding.

 
ickyrusty
post Posted: Feb 16 2005, 07:47 AM
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In reply to: ickyrusty on Thursday 10/02/05 01:32pm

More news from The Resource Investor:

Petra Takeover of Crown Creates Compelling Diamond Proposition
By Stephen Clayson
12 Feb 2005 at 06:09 AM EST

The impending takeover of ASX listed Crown Diamonds by London AIM listed Petra Diamonds will create an enhanced firm with substantial interests in both exploration and production, indeed becoming ‘the biggest pure diamond play in London or Australia’ according to Petra’s CFO David Abery.
The deal should create a stable platform from which to develop Petra's highly promising BHP Billiton joint ventured Alto Cuilo project in previously troubled Angola, which has been relatively peaceful since its 25 year civil war lulled to a hopefully permanent hiatus in 2002. According to the joint venture agreement BHP is required to spend $60m in order to acquire 75% of the Petra subsidiary that holds the Alto Cuilo project, after which funding by the two companies would continue in a quantity proportionate to their shareholdings in the aforementioned subsidiary.
The Alto Cuilo project is thought to hold quite significant alluvial diamond deposits, but even greater potential lies with the kimberlitic resource, which is currently estimated at 115mt and is described by Mr Abery as having the potential to be ‘one of the world’s largest kimberlitic deposits’.
Encouraging exploratory alluvial production has already been attained from Alto Cuilo with drilling to be undertaken this year and next that is intended to further define and upgrade the kimberlitic deposit, which is partially obscured beneath large amounts of sand.
Alto Cuilo is currently undergoing a pre feasibility study and preliminary economic evaluation. A full feasibility study on a project of this magnitude is likely to take around three years, with full commercial production realistically a minimum of five years away.
An early estimate of the construction cost of a mine at Alto Cuilo is $250m, while costs per tonne have been plausibly projected at $25. What the Crown takeover primarily brings to the enlarged group is ready cash flow from its three producing mines in South Africa that might enable Petra to see Alto Cuilo to fruition without inordinate financial hardship. The takeover also bolsters the management expertise available to the new entity in the advancement of its goals.
Petra's share of the Alto Cuilo project now stands at 36% of kimberlitic deposit and 38% of the alluvial, but according to Mr Abery ‘negotiations are ongoing’ with local joint venture partners regarding the increase of this stake, and the company is ‘very confident’ that something will be achieved on this front.
Petra’s CFO imparts that output from the Crown assets is hoped to be ultimately increasable to around 200,000 carats per annum with a level of 167,000 carats forecast for 2005, and that each of Crown's currently producing assets have projected mine lives in excess of 15 years.
Crown also brings to the group an interesting prospective joint venture of its own, held with Mano River Resources in Sierra Leone. Here $1.5m is being spent to secure the company’s 51% equity and profit interests, with small scale exploratory production likely to take place in 2005 and the first commercial output expected in 2006.

After the conclusion of the takeover deal, which is expected in 6-8 weeks, the enlarged Petra will undertake an institutional placing on both the ASX and the AIM in accordance with its new dual listed status.
Whilst the thrust of Petra is firmly on the progression of Alto Cuilo the company also has some other assets in its portfolio, though these are very much subordinated to the flagship project.
The company has retained the rights to a cluster of seven properties in South Africa called Limpopo Farms that had previously been under joint venture consideration by Rio Tinto, but in the event they were not deemed likely to prove sizable enough. Despite this Mr Abery says that ‘an awful lot of kimberlitic indicators remain’, and that Petra may look at joint venturing these properties, probably with another junior given the rejection by Rio Tinto. The company is also conducting bulk sampling at it Syerfontein concession in South Africa.
In addition to the Alto Cuilo project Petra holds in Angola a 5% carried interest in the Muriege green field diamond prospect, as well as the Medio Kwanza concession where kimberlitic deposits are know historically to exist and may one day be further explored by the company.
Petra is also looking at other projects outside its portfolio, which according to Mr Abery are most likely to take the form of joint ventures or interests in prospective land parcels, and not stakes in public companies. Petra's immediate priority is of course overseeing the mechanics of the Crown acquisition transaction and associated restructuring, and this is proceeding on track.





 
ickyrusty
post Posted: Feb 10 2005, 02:02 PM
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In reply to: CarBroker on Thursday 10/02/05 11:29am

More news on Crown merger....looks great buying at these levels ????????

Date: February 10, 2005

Merger Of Petra Diamonds And Crown Will Form Well Balanced Mid Tier Producer.
You heard it here first. In our That Was The Week … That Was feature over the weekend we ended a comment on the price movement of Petra Diamonds with “Rumour has it that a statement about another deal will be made at Indaba and this may involve temporary suspension of the listing”. And so it has proved with the announcement that Petra is to merge with Crown Diamonds which is listed on the ASX. This merger will take place via a scheme of arrangement and the enlarged group will take the name Petra Diamonds and will be listed on AIM and the ASX. On the latter it will challenge Kimberley Diamonds in terms of market capitalisation, but Kimberley will retain its proud title as the only independent Australian diamond producer. Shareholders will have to be patient at the merger counts as a reverse takeover under AIM rules and trading cannot resume until as AIM Admission document relating to the proposed transaction is published. It should be worth the wait, however, as the deal propels the new company to the top of the world’s mid-tier producers with 200,000 carats expected this year. Both bring plenty by way of dowries to the wedding. Crown has cash flow from producing mines in South Africa and Petra is involved with BHP Billiton in a joint venture on the world class Alto Cuilo kimberlite in Angola as well as having other assets in that country and in South Africa. The reasoning behind the merger is clear to see. The combined portfolio of diamond projects ranges from exploration to production and offers geographical spread not only in the two countries mentioned, but also into Sierra Leone where Crown is involved in a joint venture on the Kono diamond project with AIM listed Mano River Resources. Both companies have significant skill and expertise, not only in exploration, but also in underground and alluvial mining. There will also be some cost savings as the expenses involved in running two listed companies and conforming to all regulatory requirements will be cut. This is not the primary aim. It is to build a diamond company with a growing production profile stretching far into the future. It cannot be compared with Canada’s biggest independent producer Aber which is a one-mine company at its joint venture with Rio Tinto at the Diavik mine, nor with Trans Hex in South Africa which is focussed on alluvials. Charles Mostert, a director of Crown Diamonds, was in London assessing the pros and cons of a listing on AIM in the spring of last year. Single handedly he had moved the operations of the company into South Africa with the original acquisition of Messina Investments which brought in the Star and Messina mines. The acquisition of the Helam mine last summer helped to firm up the plan to list in the last quarter of 2004 through brokers Ocean Equities and a year of achievement was crowned when the company snatched the Dancarl mine from under the nose of Dwyka Diamonds in a bidding contest organised by De Beers. The Dancarl mine is very close to Messina and will be run as a single operation. All are kimberlite fissure mines with lives of more than 15 years ahead of them, and all produce high quality gem stones. This year the Helam mine, which has been in continuous production for 60 years, will produce around 96,000 carats of diamonds with a value of US$74/carat; Star is expected to produce 36,000 carats at an average value of US$200/carat; and Messina and Dancarl together should chip in another 35,000 carats. Last year Messina’s diamond had an average value of US$250/carat, and this should be maintained in 2005 when underground mining will get underway at Dancarl with mining taking place from the Messina infrastructure. Petra has two diamond exploration projects in South Africa, Limpopo Farms and Syferfontein, both of which were acquired from Gold Fields. Indicator minerals have been discovered on three of the Limpopo Farms properties and bulk sampling is underway at Syferfontein. The star, however, according to Chairman Adonis Pouroulis is the 2,670 sq kms Alto Cuilo project in the north east of Angola. Leading diamond analyst James Picton has visited it quit and he says that after only six months of drilling a deposit of 115 million tonnes has been confirmed and this could grow, as drilling continues, to 250 million tonnes or even more. A small forty tonne sample revealed 23 macro diamonds weighing 18.7 carats and he assessed the average value as US$200/carat. This excluded a large white gem quality octahedron and without that he put the grade as 23 carats/100 tonnes. Just to give an idea of the value of Alto Cuilo he used very conservative figures of 250 million tonnes at a grade of 30 carats/100 tones and a price of US170/carat and then did his sums based on a value at 8 per cent of the in-situ reserves. The result was a valuation of US$1 billion, which would double if the resource increases to 500 million tonnes, which he considers to be quite possible. Picton then did a calculation of net present worth based on a 10 million tonne/year mining operation on the bigger deposit and came to the conclusion that Petra’s interest on a long term basis was worth 158p per share. It is still early days at Alto Cuilo, but these figures speak for themselves. Picton is convinced, however, that Alto Cuilo has the potential to rival some of the world’s biggest kimberlites as it is open-ended on the prospecting front. Modest production from alluvials can be expected this year , but there is no reason why major output from Alto Cuilo could not start in 2008. Quite a prospect and the enlarged Petra will have cash flow in the meantime that will make it that much easier to fund its share of development costs. Looks like Messrs Pouroulis and Mostert have come up with an excellent deal. A funding will probably take place when the shares are re-listed and Ocean Equities and Williams De Broe should not find the job too difficult !!!!!!!!!!!


 
CarBroker
post Posted: Feb 10 2005, 11:59 AM
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This might well be a good time to buy. CRD is a rather odd company (in my short experience). It's like it has a majority of shareholders who don't like making money.

A recent example:
On 15/3/04 the SP had been sitting for a relatively short period around $0.12-0.13. On that day, CRD announced an issue at 12 cents. I can't remember the closing date for the issue, but a mere 10 days later, the sp was sitting on $0.16-$0.17. The issue was open to anyone - not just shareholders.

So... I figured the issue would be oversubscribed and therefore applied for a large number of shares (excecting to be scaled back). But no.... It was only slightly oversubscribed and I got my full number. Oops. I had to quickly sell 25% of them at $0.17. That was the day after I got them. Can't complain, really.

Now, the sp has been expertly (one hopes) valued at $0.285, and the shareholders are doing all they can to get out at $0.225. Could it be another opportunity for a quick profit? I only wish I had some more cash to buy with....

Then again, give it a couple of days and you might pick 'em up at $0.21 tongue.gif

 

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mme
post Posted: Feb 9 2005, 03:56 PM
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Crown Diamonds and Petra - A$250 million merger plan. One Petra share for eight Crown Diamond shares held. Equates to a CRD share price of nearly 29 cents according to the ASX release if it goes ahead. Don't need to be blind freddie to work out that that's a substantial premium to the current share price!!! Might be worth a buy tomorrow!! Holding CRD. biggrin.gif

 
THERMOC
post Posted: Feb 2 2005, 01:00 PM
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Starting to look interesting again

 
CarBroker
post Posted: Nov 23 2004, 07:23 AM
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I heard investmentwise said 40 cents in 12 months. Stop loss 14 cents.

 
ickyrusty
post Posted: Nov 22 2004, 12:29 PM
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Looks like Rivkin or another newsletter may have this down as a buy, heaps of small bids lining up at limit prices allocating small % to their portfolio.

 
 


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