In the company’s presentation held in November 2018, a snapshot of Newfield Resources Limited (ASX: NWF) was there. Further, it highlights that the company is operating in highly endowed provinces. The company holds licenses in the regions of Sierra Leone and Liberia. It also confirmed that these provinces hold high-value diamond deposition. Its province Sierra Leone has stable political and social influence for the past 15 years. An advanced kimberlite exploration is going at Kumbgo in Liberia. The company holds two adjacent mining licenses with the combined area of 134km2 in eastern Sierra Leone. At its Tongo mines, 11 diamondiferous kimberlites were identified. The Tongo mines infrastructure includes 50tph processing plant and 5tph bulk sample plant. It has reached its final stage of front-end engineering, design and development planning.
Further, a generalized description of its asset Kundu, Lando, Tongo D-1, Pandebu, Panguma, Seleima, Tongo was given. Its Tongo mines hold a premium quality gem. The diamonds which this mine possess is a typical Sierra Leone diamond. They are mostly white, colorless and transparent. These are a very high-quality gem with excellent crystal shapes after cutting and polishing. The Tongo mines are going to be the next great diamond mines in West Africa which are highly capable, highly prospective, highly valuable and highly scalable. The first production at the Tongo site is expected to begin within 12 months.
Before the diamonds are marketed and the diamonds are ready for the final sale, the rough diamonds are sent to Antwerp to sort diamonds with similar features. The export of these diamonds is very simple and is also well established which is also very secure. The sale of the diamond is done based on the auction. The price of the diamond is based on the level of transparency. Also, these diamonds receive Kimberly Process certification.
Over the past 16 years, the Newfields group is working towards keeping the safety on the mind. The diamonds at the Tongo is of high grade. A low initial capital is in its existing plant and infrastructure. Also, the senior management team of the company is highly experienced.
NWF is a consistent negative performer since its inception. The performance of the company since inception is -33.54%. The one year and five years performance of the company is -46.60% and -47.53% respectively.
After the company’s presentation, the share price of the company hiked by 37.5% since morning which is equivalent to 0.045 points. By the end of the day, the market price of the share was A$0.165 with the market capitalization of A$69.76 million.
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