DiamondCorp share price falls sharply
Delays at Free State mine put pressure on cash flow
DiamondCorp’s share price fell more than 30% in London on news of further delays at its new Lace mine in the Free State, capital raising, debt restructuring and pending additions to the executive management. The company has been struggling to bring the mine into commercial production for a number of years. The shares fell to an all-time low of 2.1p on Wednesday before pulling back to 2.875p, as the shares plunged 30% during the session and brought the decline so far in 2016 to 57%, the largest drop in its peer group. DiamondCorp, which is listed in London and Johannesburg, said it had further pushed back the target date for commercial production, citing difficulties with extracting enough tonnages, due to drilling constraints. "The slower production ramp up means that the build-up in diamond inventory will be lower than budget, resulting in either smaller diamond sales or a rescheduling of tender sales, either way increasing pressure on group cash flow," DiamondCorp said. Management...
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