Sarine Technologies

[Nick]

Recent updates on the 2 new technologies created by Sarine.

Sarine Announces First Sarine LightTM Orders In The United States And Taiwan

http://infopub.sgx.com/FileOpen/Press_Re...eID=298463

Rapaport's RapNet® To Be Launch Platform For Sarine LoupeTM Imaging

http://infopub.sgx.com/FileOpen/Press_Re...eID=299096

The commercialization moves seems to be taking off . I expect Sarine Loupe to be more easily accepted than Sarine Light. Management guided that 2014 is a transitional year so contributions from these technologies will only be substantial in 2015 onwards assuming it is well accepted.

(Vested)

[greengiraffe]

Diamonds regain sparkle for miners as demand rises
ALEXIS FLYNN COMMODITIES DOW JONES JULY 10, 2014 12:00AM
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29/09/2006 FINANCE: FINANCE Resources Argyle diamond mine Kimberley visitor centre. Various shaped stones/diamonds mine minin...
Diamonds may not be forever. Source: News Limited
DIAMONDS, it turns out, may not be forever.

There hasn’t been a major new diamond lode discovered for years. Along with rising demand from new consumers in the East, that is good for mining companies whose profits are rising at the most lucrative part of the business: the rock face.

The industry’s shifting dynamics have prompted a rethink by some the world’s biggest mining companies, including Rio Tinto and Anglo American.

For years, falling commodity prices and rising costs made many of them question whether it was worth staying in the diamond business.

But now, diamonds have regained their sparkle.

“We expect the demand requirements to grow around 6 per cent per annum for the course of the decade,” said Alan Davies, head of the diamond unit for Rio, the world’s third-largest diamond producer. “And when you look at the supply response there hasn’t been a major find brought on for a long time.”

Just 18 months ago, BHP Billiton and Rio each had their diamond units on the block. In 2012, BHP sold its Ekati mine in Canada to jewellery maker Harry Winston for $US500 million.

Rio, however, didn’t get a satisfactory offer, say bankers who advised the company. Instead, Rio hung on to its mines in Canada and Australia.

Now digging the stones out of the ground is the most profitable part of the diamond value chain. In 2012, rough diamond miners achieved average profit margins of between 16 per cent and 20 per cent, according to a study by Bain & Co.

The next highest margins — achieved through the sale of finished jewellery products by retailers such as Tiffany & Co and Cartier — averaged 11-14 per cent.

For Anglo American and Rio, diamonds now deliver some of the healthiest returns.

Last year, margins from Rio’s precious stones division were double those of aluminium, while the rate of return from Anglo American’s diamond unit was higher than core businesses such as platinum and coal.

“If you look at prices across the mining industry, diamonds stand apart with prices continuing to rise,” said Rene Medori, Anglo American’s chief financial officer.

No major diamond finds have occurred since Rio’s 1997 discovery of three kimberlites — mineral-bearing igneous rock — at Murowa in southern Zimbabwe. Without further discoveries, world diamond supply could peak in 2018, according to Bain consulting.

Meanwhile, a new-found taste for diamonds as part of the ­betrothal process in China, India and Japan — once a purely Western phenomenon — has boosted demand. Last year, demand for diamond jewellery grew 18 per cent in China, the world’s fastest-growing market.

In the US, still the dominant diamond market, demand grew 8 per cent, according to De Beers, the world’s largest producer of gem quality diamonds by value.

In the first half of 2014 alone, rough diamond prices charged by major mining companies rose 7 per cent on average, according to a report by the New York-based Rapaport Group, the industry’s main market information source.

Diamond values depend on their quality. Some sell for as little as $US65 a carat — a unit of mass used to measures gemstones. But in February, South African producer Petra Diamonds sold a rare blue diamond recovered from its Cullinan mine for $US25.6m ($27.2m), or $US862,780 a carat.

With upstream profits increasing, Anglo American shelved a mooted plan to spin off De Beers in an initial public offering, according to sources.

Anglo bought a 40 per cent stake in De Beers for $US5.1 billion in 2011 from the family, taking its total holding to 85 per cent.

An Anglo American spokesman declined to comment.

The De Beers acquisition provoked mixed feelings inside Anglo American, the sources said. Some executives felt De Beers was a poor fit given Anglo’s focus on industrial commodities such as iron ore and copper.

Others felt former chief executive officer Cynthia Carroll had paid a high price for a controlling stake in the company.

“It is clear that we paid toward the top end of valuations but this is a company and market that we know well given the long history between Anglo American and De Beers,” the Anglo American spokesman said.

Anglo’s new boss since 2013, Mark Cutifani, has sought to make De Beers a leaner operation and seconded some of Anglo’s top technical experts to oversee its mining operations.

Last year, De Beers, led by chief executive Philippe Mellier, more than doubled its operating profit to $US1bn.

When he was hired in 2011, Mr Mellier — who previously held senior positions with automakers Ford Motor, Renault and Volvo — had no experience with diamonds. With diamond miners now investing heavily in automated technology to recover more diamonds from harder-to-reach deposits, a background in complex manufacturing mirrors the industry’s new direction of travel.

De Beers is spending $US3bn over 15 years developing one of the largest open cast mines in the world, Botswana’s Jwaneng, which includes an automated diamond recovery plant to filter the gems from other rocks.

Rio has installed an automated underground mining system at its Argyle mine in Western Australia, letting workers dig more cheaply from the safety of an operations room on the surface.

[Nick]

Sarine Continues to Shine with Record Performance in 1H 2014

Record Revenue of US$49.1 Million and Record Net Profit of US$17.6 Million in 1H 2014

 Growing GalaxyTM family related revenues and increased sales of traditional planning and rough-diamond processing products underpinned record performance in 1H 2014

 Sarine delivered a record 34 GalaxyTM family systems in 1H 2014, with 19 systems in Q2 2014, as compared to 46 systems delivered in the whole of 2013. Recurring income accounted for just under 35% of 1H 2014 revenue

 The Group has launched the Sarine LoupeTM imaging service at its Indian service centre and will commence roll-out of enhanced systems to customer sites after the September Hong Kong trade show

 Interim dividend of US cents 3.0 per share declared: US cents 2.0 based on policy and US cent 1.0 special dividend

http://sarine.listedcompany.com/newsroom...D3ZA.1.pdf [Slides]

http://sarine.listedcompany.com/newsroom...MH7A.1.pdf [Press Release]

http://sarine.listedcompany.com/newsroom...46RE.1.pdf [Announcement]

1) Stellar results with number of Galaxy Systems growing substantially to over 170 boosting recurring revenue to over 35% of total revenue. The shift from a capex to opex business provider will boost the resilience of the business albeit at lowered initial profit.

2) Revenue grew by 11% and gross profit grew by 13% though operating profit only grew by 7%. This reflects the increased R&D and marketing costs for the new Light and Loupe products ie teething cost. This implies the actual core earnings is higher and was weighed down by the start up expenses.

3) Sarine Light and Loupe looks poised to take off this year. The actual contribution to earnings will likely only take place after 2015. Like mentioned in the AGM, this is a transition year with growth in Galaxy being dragged by marketing expenses for the Light and Loupe. When they start making 'significant contributions in FY 2015' and onwards, I expect the twin effect of Galaxy and the 2L to grow profits rapidly

4) FCF remains superb with record level of cash exceeding US$45 million. I expect dividends to exceed last year 6.0 US cents. The Company can easily finance its rapid expansion into Asia and North America (key regions for the polished trade) with its internal proceeds. Trade Receivables remains stable - a worry in the previous year.

5) Despite the high valuation, I remain a believer in Sarine's ability to churn out game changing technology for the diamond industry. The proper execution (a big if) of its entry into the polished gem market with Light and Loupe will boost its profitability dramatically.

(Vested)

[CityFarmer]

Sarine Continues to Shine with Record Performance in 1H 2014

Record Revenue of US$49.1 Million and Record Net Profit of US$17.6 Million in 1H 2014

Yes, one more wonderful stock that I missed.

(not vested)

[Nick]

Sarine Continues to Shine with Record Performance in 1H 2014

Record Revenue of US$49.1 Million and Record Net Profit of US$17.6 Million in 1H 2014

Yes, one more wonderful stock that I missed.

(not vested)

Haha ! Plenty of misses on my end too ie Penguin.

Tiffany Selects Sarine Technologies DiaMension Axiom to Develop New Polished Diamond Symmetry Standards.

http://infopub.sgx.com/FileOpen/Press_Re...eID=309329

More game changing technology for the polished trade.

(Vested)

[ksir]

Sarine Continues to Shine with Record Performance in 1H 2014

Record Revenue of US$49.1 Million and Record Net Profit of US$17.6 Million in 1H 2014

Yes, one more wonderful stock that I missed.

(not vested)

Haha ! Plenty of misses on my end too ie Penguin.

Tiffany Selects Sarine Technologies DiaMension Axiom to Develop New Polished Diamond Symmetry Standards.

http://infopub.sgx.com/FileOpen/Press_Re...eID=309329

More game changing technology for the polished trade.

(Vested)

Tiffany, wow, foray into retail area is getting more interesting.
Iirc, Borsheim is using their service as well.

(Vested though reduced)

[ahyeh]

Sarine Technologies to showcase Real View in Hong Kong gem fair

Sarine Technologies, the Israeli maker of gemological tools, said it will be presenting its latest developments in polished diamond imaging at the Jewellery & Gem Fair in Hong Kong, September 15-19th (Booth 11Y02).

The newest development Sarine will be showcasing is the addition of the new Real View feature to Sarine Loupe to provide the perfect online trade imaging solution. Real View adds a clear, stunningly realistic perception of how the diamond looks, to the Sarine Loupe’s existing abilities to view the polished diamond's Cut and Clarity characteristics with accuracy and quality, so as to enable the buyer to make an informed buying decision.

Uzi Levami, Sarine's CEO, said, "We are confident that the newly enhanced Sarine Loupe will enable online assessment of polished diamonds with altogether new and outstanding means, enabling buyers to ascertain both the beauty and quality of the offered polished diamonds with accurate and objective information. Diamond sellers will have at their disposal an excellent system by which to accurately showcase their polished diamonds to potential buyers, creating a virtual online storefront concurrently accessible by buyers worldwide. The inefficiencies that are currently part and parcel of the trading process can be rendered inconsequential, as we can now offer the industry the means by which to take trading into the 21st century, both for the B2B and the B2C markets."


http://www.theedgesingapore.com/the-dail...-fair.html

[jovialger]

Strong 3Q results announced by Sarine:
http://infopub.sgx.com/FileOpen/Corporat...eID=323516

- 3Q sales and NP +17% and 85% yoy
- 9M sales and NP +16% and 20% yoy
- recurring income grew to 35% of sales.
- zero debt, cash balances amounted to 53% of equity as at Sep 14
- Sarine Loupe services launched in India, Israel and NY, and met with overwhelming positive feedback in HK trade shows etc. Will begin the initial roll out to customer sites from 4Q14.

[CityFarmer]

Strong 3Q results announced by Sarine:
http://infopub.sgx.com/FileOpen/Corporat...eID=323516

- 3Q sales and NP +17% and 85% yoy
- 9M sales and NP +16% and 20% yoy
- recurring income grew to 35% of sales.
- zero debt, cash balances amounted to 53% of equity as at Sep 14
- Sarine Loupe services launched in India, Israel and NY, and met with overwhelming positive feedback in HK trade shows etc. Will begin the initial roll out to customer sites from 4Q14.

Sarin Tech is definitely a value stock, but the pricing never right

(not vested, but monitoring closely)

[Nick]

Sarine Technologies (SARIN SP): Credit crunch hits; Hold TP SGD2.98
Ø 3Q14 net profit of USD5.7m in line.
Ø Expect credit issues for customers in 4Q14. Cut FY14E-16E EPS by 3-8%.
Ø Maintain HOLD with lowered DCF TP of SGD2.98, from SGD3.16.

http://research.maybank-ib.com/pdf/docum...4_6832.pdf

The catalyst will be the widespread adoption of Sarine Light and Loupe in the newly penetrated polished diamond sector.

(Vested)