Well, after a fair amount of procrastination NDM finally listed on the ASX late last year with an IPO of 50c per share.At one stage it looked like they were going to list on the London AIM but thankfully, that wasn't to be.
Nare Diamonds is an Australian company with a portfolio of diamond production and exploration assets in southern Africa. They have interests in four projects:
- The Schmidtsdrift alluvial diamond mine , a producing mine with consistent historical production from prospecting and trial mining activities since 2001. Nare re-commenced trial mining in April 2006 and mining had yielded 1584.02 carats by end June 2006, including a rare 235.03 carat diamond.
-The Kamfersdam tailings treatment plant where production is set to commence shortly.
-The Klipspringer Joint Venture .
-The Groen River exploration project.
The team behind Nare all have impressive resume's (CEO Charles Mostert has been on the scene with Petra/Crown Diamonds in the past) and this compnay would appear from the outside looking in as an excellent venture with a lot of potential upside. Check out www.narediamonds.com
So why , I ask, has the share price dropped from an initial opening of 50c to it's current level of 36c? Sure, a lot of sophisticated investors may have bailed in the early days but 28% loss in a month seems drastic.
Would anyone be prepared to comment on this company? Also comments with reference to IPO's and their tendency to tank in the early days, and also the whole diamond mining sector as a whole would be interesting.
There doesn't appear to be a whole lot of discussion on this forum on Diamond mining/exploration.
I personally like NDM and I am currently a holder (albeit nervous).