>>anyone got an Australian newspaper handy?<< - Here's an article in 'The Australian', re. Ashton Canada's 62% owning parent company, AML:
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theaustralian.com.au
Shock as Ashton heads roll --- By DAMON FRITH --- 13aug98
ASHTON Mining stunned the resources community yesterday by announcing the immediate resignations of chairman Nobby Clark and long-serving chief executive John Robinson.
Inexplicably, Ashton was acting yesterday as if the departures were not extraordinary, with no comment available on the situation.
The market was perplexed and analysts could offer little insight into any imminent changes in store for the dedicated diamond producer.
Displeasure at the lack of communication from the company resulted in the stock shedding 5c to 94c.
Analysts said there was little doubt the removal of Mr Clark and Mr Robinson was instigated by the company's 47 per cent controlling shareholder, Malaysia Mining.
One analyst said Mr Robinson was "capable and well respected" and his removal had been "totally unexpected".
Ashton finance director Douglas Bailey was appointed interim chief operating officer and an international search is under way for a successor to Mr Robinson.
Mr Clark was replaced by Ashton deputy chairman Paul McClintock.
Mr McClintock, who has close ties with Malaysia Mining, is chairman of the Australian-Malaysia Business Council and former chairman of Plutonic Resources - of which Malaysia Mining was the major shareholder before its takeover by Homestake Mining.
In a release to the market, Mr McClintock said no change to the company's focus was being considered and it was Malaysia Mining's intention to maintain its shareholding.
Mr McClintock's comments seem to rule out operational differences as a reason for the resignations.
A possible explanation is that Malaysia Mining forced the resignations because of frustration over the company's share price performance.
In May this year Malaysia Mining took up its full entitlement in a $35.4 million rights issue (equivalent to $1.15 a share) and participated in a $34.4 million placement to institutions to $1.23 a share.
At the time Ashton was trading at $1.30 a share but it went into rapid decline and reached a low of 77c on June 29.
Just before the low, Ashton and Rio Tinto, its joint-venture partner in the Argyle diamond mine in Western Australia, announced that the open-pit operation, which produced 40 million carats a year, would be cut back to extend project life.
Ashton is also bringing on stream new diamond mines in Indonesia, Angola and Western Australia.
Meanwhile, the world's largest diamond trader, De Beers, yesterday announced a 33 per cent fall in interim net earnings to $US405 million ($686 million) from $US606 million previously.
Over the six months to June 30, diamond stockpiles increased by $US256 million to $US4.7 billion and the company's long-term debt rose $US224 million to $US1.1 billion.
Directors said retail markets in the US, the UK, France, Italy and China had grown but had not matched declines in Japan and South-East Asia.
c News Limited 1998
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Diff. article re. AML: theaustralian.com.au
Cheaper diamonds help Ashton sparkle -- By DAMON FRITH -- 24jul98
ASHTON Mining trumpeted an 18 per cent increase in sales to $US230 million ($365 million) yesterday for the six months to June 30 despite a 41 per cent decline in revenue over the same period from diamond cartel De Beers.
Ashton's June quarterly report said a shift in the diamond market to "cheaper goods" appeared at the beginning of the year.
Ashton has a 40.1 per cent holding in Argyle and in mid-1995, in conjunction with its partner, Rio Tinto, ended a sales agreement with De Beers to sell the mine's production to the cartel in return for set prices and an international body that stabilised excess supply in the market.
Through the London-based Central Selling Organisation, De Beers recently announced first-half sales of $US1.7 billion, a 41 per cent fall on the previous corresponding period.
Ashton said its success in building sales was due to a focus on its customer base and a strategy to "avoid the burden of heavy stocks, prevalent throughout the latter part of last year".
Ashton said its focus for the remainder of the year would be on prices rather than volume selling.
The 18 per cent increase in sales was made possible by continued strong growth in the US for mass market diamond jewellery, but the slowdown in the Asian region also led to a shift to lower quality products in Japan and parts of south and east Asia.
c News Limited 1998
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Australian Newspapers Online: webwombat.com.au |
