Trying to make sense (Part 2) !Trying to make sense of what at first does not make any (Part 2) !
First let me start by saying that as I read it, the press release was very positive and demonstrate that Afri-Can is moving in the right direction in regards to the implementation of it’s business plan. (Please refer to Afri-Can latest quarterly reports were the business plan information can be found.)
I agree that understanding Marine diamonds is not easy for most, and may required a bigger effort, so allow me to make a brief recap.
For those that remember the block J results, you must remember that what created such a downer about these results was that average size of the stones recovered was very small (0.12 carats per stones). If we would have found the regional average size of about 0.20 carats per stones the results would have been greater and if we could have had the size of stones we found on EPL 3403, the results would have been has high as the wildness prediction of our Swedish friends !!!
Having gone back and read the material from Block J, I realized that prior to the starting of the last sampling on Block J, the average size of the diamonds founds previously was around 0.14 carats per stones, and that was below the regional average. I also remember that the exploration model assumed that large stones would be found at the depth that could not have been reached before with the other vessels. Unfortunately, that model as not yet been demonstrated, it may still be at a later stage.
Now when I look at all the results to date from EPL 3403, the 117 stones recovered, and I look at the fact that there average diamond size is very similar and in some areas bigger then the regional average, I have no reason to believe that Mr. Léveillé statement, will be not proven right over time and that investors that have longer time line then a millisecond will be rewarded.
For those that do have a read the press release all the was to the statement, here it is:
Pierre Léveillé, President and CEO of Afri-Can, stated that, “The results of this first sampling phase have exceeded our expectations. Our diamonds’ size is in line with attractive regional average diamond sizes and we have found at least 3 deposits. In addition, the diamond market is very robust and has seen an increase of 30% in rough diamond prices in 2010. Namdeb increased production by 58% to almost 1.5 million carats last year at a selling price over US$500 per carat. We expect the diamond market will remain robust for many years as demand surpasses supply and new diamond mining projects are few. We feel that we are sitting on a strong project in a very solid industry.”
So my conclusion, AFA was way undervalue before and is still way undervalue.. Now if we can just get ride of those pro, algorithm and day traders, we will have a better chance at having a natural market... Anyway, since the only people making money are the banks and brokerage firms, I just hope that does idiot will realized that they will never make any real money when they just trade between themselves, and that they are nothing more then slaves to the Banks..