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Gold/Mining/Energy : MPVIF Mountain Province Mining

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To: Dean Bristow who wrote (1055)7/21/1998 1:44:00 PM
From: Gabriela Neri   of 2577
 
It is very difficult for me to see any leverage to be gained on the part of DeBeers over BHP through the potential of a mine which may be in production within 3 years. BHP is hurting in the here and now and DeBeers leverage will come through its current support or lack therof of the high end diamond market and its throttling back or up on its current production of diamonds from currently producing mines. Something which may happen in 3 or so years is not leverage at all. Therefore, I find your logic difficult to accept because the concept of 3 year potential forward production exerting any leverage over BHP is nonsense when DeBeers has weapons which could inflict pain in the here and now to a weakened and wounded competitor.
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