The height of optimism – a junior mining entrepreneur seeking cash

By Alec Hogg

Entrepreneurs by their very nature are optimists. But even the sunniest would struggle to match James Campbell of Rockwell Diamonds. Yesterday, the miner's third quarter numbers revealed a ballooning in its losses and a balance sheet so weak that current liabilities exceed current assets by around R20m – an alarm bell for a business with a modest R136m market cap.

But in our CNBC Africa interview yesterday, the ever optimistic Campbell could barely contain his excitement. Despite the obvious challenge of just staying alive, the company is also negotiating a deal to acquire three new mines at a price that's double its current market cap. The vendors, by the way, want cash, not Rockwell shares.

How might you fund this deal, I asked. No problem, Campbell says, he's off to meet existing and potential shareholders and is certain once they see the target's potential, they'll put their hands back into threadbare pockets. Despite mining stocks being as popular as a priest in a brothel? And Rockwell itself being a negative ten bagger in the last seven years? Good luck James. You'll need every ounce.