BON bonaparte diamond mines nl

why the dump: its the time factor.

  1. 551 Posts.
    OK, so 'dump' is a bit of an exaggeration, it is only 540,000 shares. But as a holder there is a factor in yesterday's announcement which disappointed and that is the production target of 2011.

    In this market, three years until first revenue generation is a lifetime - we assume some diamond revenue along the way to underpin BON but we have not really heard much about this of late.

    Other parts of the announcement seem to accentuate the uncomplicated, 'rapid-development', simple beneficiation nature of the resource, along with the additional resources UCL bring eg dredging arrangements.

    So why 3 years until then?

    Is current cash holdings enough to last until then?
    If not, will a capital raising be achievable and at what dilution?
    What do the 3-year RP supply vs demand projections look like?
    What is sovereign risk like in Namibia?
    What risk is there re issuing of mining licences?
    If UCL falls over, does the JV get adversely affected?
    What value will JORC create now that it will be a JV asset, and is it still on track for this quarter for EPL3323?

    What would be very beneficial is to have a more detailed project development plan released by the company containing some capex and opex forecasts, so that we can be reassured that the company can get there.

    I have been quietly very keen on BON because I like their RP story NOW but I guess I am slightly less bullish about the 3 yr wait. I had been topping up recently, and it is very tempting at the current price, but I think I will sit and wait for a while now.

    So I guess I understand why someone who was expecting a quicker revaluation might have dumped and walked away at this point.
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