The latest announcement, page 11 - "These five stoned (77cts) were never intended to generate material cashflow ...."
If that is the case, then why was the presentation on 2/02/2017, page 2 - showing The Graff Ruby (carats:8.62) with the sale price of US$ 8,372,04 & The 'Sunrise' Ruby Carats: 25.59, Sale Price: US $30,420,000.
The whole story was exactly told the way the company wanted it to be told ....
Based on those special stones, a very high market cap was attributed to it, hence this huge run up.
My interpretation of the statement in the latest announcement is to back peddle after the 5 stones were looked at by Meg Berry.
Tell me what you would do, if you were managing this company.
1. You market these beautiful Gems, with the potential of x,y,z due to historic sale prices of stones found nearby.
2. You announce that production has increased.
In other words, investors are thinking that if production has increased, surely they will find more of these special stones, especially if this is just the beginning!!! (Imagine how much the company is valued now???)
3. The stones are being sent for valuation and the results will then be made.
Surely, once the valuation comes back, the SP will go through the roof!!!
After all, these stones must be worth something, since a peer has already sold them for THIS BIG!
4. Since the company is making so much progress, it might be a good opportunity for current holders to increase their stake in the company - after all, if it is not done now, it might be too late to purchase the shares on market.
My point is this ... a fantastic story was sold to the market, in exchange for cash to grow the business.
Somewhere along the lines, if the product doesn't eventuate, the only people who will benefit are those who are paid wages.
DYOR
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