I'm afraid that you may be correct. It does appear that they are not generating as many diamonds as they first hoped they would - because of the 'wet' kimberlite being sticky like clay and needing thinning with dry material to process.
They are in their summer at the moment, so they should be improving all the time. But I do wonder if they have generated what they suggested they might. I still think the January sale will be greater than 24k carats. Afterall they do have a few months of production (at much reduced capacity), but I doubt that they will sell more than 30k carats.
The trouble is that they are great at finding good sites, but they have not managed the share issues and the production to get the figures they promised they would. As a result, they've damaged their reputation.
Kerry and Roy both said that a placing might be needed and that it would be for Finland. But it seems to me that the real reason behind this placing is that they have not been able to produce what they said that they would. Otherwise why should they do the placing before the diamond sales rather than after when the price would have been higher.
They have not been thinking this through clearly and choosing the right options. They could have gone for a short term loan and this would have enhanced confidence. Instead they chose to dilute and give warrants to boot.
I reckon another placing might be possible. It certainly looks as though this one was not as large as it should have been. This is just a million dollars and not really enough as I see it if they still do have this production shortfall.
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