RE:Results of First Diamond Sale of 2022, Provides UpdateYet another excellent result ... lots more cash....as expected ... in line with a great rough market and a surge in smaller diamond prices.(well done management) So you have to expect they will sell 420K Cts in the Feb sale im betting $40USD thats a conservative in the current market .... so we didnt need that 3rd sale even if it only falls outside Q1 by a few days.
Covid noted but guidance clear. Take even 3.2m Cts on a 49% basis - it would be very difficult to argue that sales should not be USD$310m and we will generate cash USD$80 additionally on top of whatever we generated last year..ok thats. the bonds down to USD$200m by year end...
And thats on managments lower end of guidance and no price increase from here...
Only red flag i see is the increase in Proiduction costs guidance for the year $64-68 per Carat recovered. Seems high compared to previous years and difficult to equate with driving production costs down but no doubt there is some logical reason for this.
Personal view is that the above will be exceeded substantially due to ongoing supply issues but thats only a personal view- the experts in Diamond Market research- Ziminisky etc are the ones who are stating it more strongly by the month.
If the bond holders are circling these wagons its difficult to understand why.
Debt free by end of 2025 (thats what the market price projections are saying in terms of what cash should be generated) assuming there are no new significant capital spends outside of routine mining at GK.
Great to be generating so much cash- it solves most issues
Great to see Mark appointing some new experienced names
Great to see up to date management guidance
Great to see the rough market currently, and more importantly where it is predicted to go
So MPVD looks forward to a very bright future.
Good luck to all. Hopefully we have not capped the shareprice with the proposed facility announcement but lets see. All every shareholder wants is price appreciation that will start to reflect the underlying significant asset value.