Hi VAUGHN/ALL,
I'm doing some research on RANDGOLD, trying to come up with a fair value for their many holdings. In hopes of saving me hours of reading and researching, could you or someone else here be so kind as to give me an estimation of the value of Randgold's chunk in this joint venture? Thanks in advance, and of course rooting for a favorable court decision. Personally from what I've read, it sounds like a lame lawsuit to me.
Best Wishes,
POLARBEAR
PS. Here's a recent article from my usual S.A surfing:
13 February 1998
Production to start despite rights row
David McKay
SOUTHERNERA Resources, the Toronto-listed diamond company, is to start production at its Klipspringer project this month despite a mineral rights row over a section of the Northern Province venture.
The dispute concerns a pocket of mineral rights at the Marsfontein farm of Klipspringer which SouthernEra Resources was to mine first.
SouthernEra president Christopher Jennings said yesterday the company would start production on an alternative, but lower grade, site - the 100%-owned Sugarbird kimberlite blow.
Jennings hopes the Klipspringer project will make SouthernEra Resources one of the world's largest diamond producers, though still well behind De Beers.
SouthernEra already produces 25 000 carats a year from sites in Angola. The Klipspringer project, set on 50 000ha of land consisting of about 19 farms, will eventually lift annual production to 1-million carats.
Pit preparation on the Sugarbird site is to start next week. The blow is expected to contain about 75 000 tons of kimberlite material grading about 1,57 carats a ton to a depth of 60m.
Preliminary valuation on a small parcel indicates that diamonds recovered from the blow will average at least $85 a carat. Diamonds from the Marsfontein farm are expected to be worth $100 to $120 a carat.
Commenting on the minerals rights dispute, Jennings said it would be "very worrying" to outside investors if the company lost the case.
In terms of existing law, SouthernEra attempted to trace the mineral rights owners, but found the minerals had not been registered under a new name since 1920, when first claimed.
Shortly before starting mining on the farm, several people claiming to be heirs of the original mineral rights holders came forward. The matter is to be heard in court on February 24.
The Marsfontein farm is 50% owned by SouthernEra, which has the right to build up an interest of up to 65% of the project from SA mining group Randgold. SouthernEra, which has so far spent about $180m on the project, was continuing exploration elsewhere at Klipspringer.
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