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Southstone Minerals Ltd V.SML

Alternate Symbol(s):  FDGMF

Southstone Minerals Limited is a Canadian junior mining company. The Company is engaged in the acquisition, exploration, evaluation, development and mining of mineral properties. The Company holds a 43% interest in the Oena Diamond Mine (Oena), which is located in the Northern Cape Province, Republic of South Africa that consists of one New Order Mining Lease. Oena is a producing alluvial diamond property. Oena is approximately 8,800 hectares in size and covers a 4.8 kilometers (kms) wide strip along a 15 kms length of the lower Orange River. The property has two separate and distinctly different aged diamondiferous bearing paleochannel gravels: Proto-terraces and Meso-terraces. Its subsidiaries include TGV Resources (Pty) Ltd, African Star Minerals (Pty) Limited and GAH Mining (Pty) Ltd.


TSXV:SML - Post by User

Comment by hempsteron Nov 16, 2019 1:18pm
170 Views
Post# 30360456

RE:RE:What is an Economic Moat? ***

RE:RE:What is an Economic Moat? ***The SP probably will not move until we get new financials, the 2019 Q4 will be released in the end of december and Q1 2020 will follow end January. Before that we'll probably see very little movement, and even less so in the right direction.
However I think these financials will help to point the stock back in the right direction as Q4 2019 was the first full quarter with significantly improved diamond production (the improvement started somewhere around mid Q3).
During Q4 '19 they did complete some upgrades at their coal plants which could lead to (increased) profitability in this area, which might already show in the Q1 2020 financials and the 2020 financial year in general, since the coal business had been creating a ca. $200k loss per year on average over the last few years.
Another positive development in Q4 in the diamonds part of SML was that ASM has now started to process the tailings at Oena, which could further improve diamond yield - depending on how much diamonds the tailings contain and how much tailings ASM will manage to process. Since tailings processing just started in Q4 it might still take some time until they reach full production capability.

So if you have enough patience and can afford to let the stock sit for a few more months, averaging down could certainly pay off, if you'd only average down to be able to ditch the stock at the slightest increase of price, it might not be the best idea I guess.


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