If a significant discovery is made., IAR would have several options.,
the least of which I know anything about at this time. Look at the
share float., percentages., but specitfially find out if there agreements
with Kennecot and Southerna list whether they are carried TO PRODUCTION. This will make an impact on the future run of the share price.should it happen.
Yes., it is no secret that sales have been slower the last half of 97.,
however overall sales for all of 97 was down 4%. I am sure the threat
of that has impacted a shrinkage of multiples of Aber., Southerna.,
Rex and is partially to blame with the state of current prices.
As I have felt., many of the existing pipes and resources in S. Africa.
are becoming less viable to mine., as Hainey has stated., each time
an important discovery., such as Jwaening., and others have entered
production., they have been readily absorbed into the market place.
At least the next 12 months should be a fairly safe window to hold
these stocks. Long term., Aber., Sotherna., Rex offer earnings going
forward and should be bought on weakness. Diamet production will
have little near term implications., with Aber 2001 tentatively.
As I have stated., my feelings concerning the producers is that eventually DeBeers will have to take action which is already occuring
with Anglo Swiss., big player in Botswana. To control the cartel., one
must control the production
George. |
