Hi ValuePro: Looks like SUF doesn't want to get tied up in court?
I would think SUF doesn't want to get tied up in court, and is just cutting to the chase, which would probably have caught the heirs and De Beers off guard. SUF drops their Section 17 application, the "heirs" drop their proceedings, and it goes to the Minister's discretion under Section 24. Looks like the alternative to that action would have been to let this thing drag out in court under Section 17, which might have taken years, with review/appeal etc. So, SUF applies to the Minister for a decision under Section 24, under which a rapid resolution is far more likely.
"Infoman" and "Gull" are engaging in rather defensive posturing about why De Beers should get Marsfontein -- their argument seems to be something along the lines that De Beers will pay as much tax as SUF and are experts at mining. Some experts, to have prospected for the diamonds on the same property and missed them 10 years earlier. Oh yes, and how long did it take De Beers to get Venetia operational: 13 years from discovery. It took SUF about two years to get operational at Klipspringer, nearby.
SUF found the diamonds with a legal prospecting permit, and are responsible for releasing the mineral wealth. They have a plant in operation nearby, and say they're ready to start mining. There's no possible way it could be in the public interest to let De Beers mine Marsfontein. In their own press release, De Beers said they would just engage in "small-scale" mining. I imagine that their supporting posters will attempt to change the meaning of that to imply that it just means *relatively* small scale, since De Beers is so big. Facts are facts: De Beers didn't discover the diamonds, so they would have to re-evaluate Marsfontein, and then start building a plant, thereby delaying employment and discouraging foreign investment in a nation that's hungry for employment and foreign capital.
SUF prospected for the diamonds, and found them, and investors and shareholders like me believed (and still believe) that justice will be served, and that they (SUF) will end up mining them. Giving the rights to De Beers simply cannot be construed as being in the public interest, no matter which way you cut it (and I'm sure the De Beers supporters on this thread will clamour about that).
De Beers' true expertise is in marketing and selling diamonds. Let them do that! Suggesting that they are better than anyone else at mining them can't be substantiated and is basically just rhetoric. I'm sure they're good at it, but I would think it's simply *not* in the public interest to let them mine Marsfontein. The resulting world perception -- that foreign companies can make discoveries that end up in the hands of De Beers -- would be a further blow to investors' confidence, which again is not in the public interest.
So, the heirs get their 30 pieces of silver (or do they :-) )
ValuePro, wrt your comment "the market seems to disagree (it's off $.75 to $7.50), but I don't understand why". I'm sure you know by now it was an even $7 at the bell ... inevitable reaction to uncertainty, to be expected. SUF has shown guts, has an impressive portfolio of properties, is ready to mine, and appears to have acted with integrity throughout: that'll pay off.
Nempela |
