Hello Fix
I alluded to the reason in my post to Goalie last week.
"NEW DIAMOND CORP. IS ALSO PARTNERING DE BEERS IN ITS BID FOR STATE-OWNED DIAMOND COMPANY ALEXKOR."
Goalie was more specific yesterday, as was DeBeers NR and the SABD article.
Foul-off a Slider right to pull and tattoo the Heater for a Dinger to left field.
Ask yourself, how many of these "entrepreneurs" are on, or have ties with the "committee/board" that will decide who gets Alexkor?
If you read the NR carefully it actually gets even cuter:
”IN ADDITION, THE PARTIES HAVE AGREED NON-RECOURSE VENDOR FINANCING AT COMPETITIVE INTEREST RATES, PRINCIPALLY TO OBVIATE THE NEED FOR DEBT FUNDING BY THIRD PARTY FINANCIERS.”
Last time I checked this was double speak for, we not only gave them (the entrepreneurs) our share of Marsfontein with proven reserves (disregarding undiscovered potential) worth roughly +/-$100,000,000 but we also gave them the $16,000,000 they needed to buy it (so they would not have to go to a bank which would expect the loan to be repaid). Not bad!
Do you think the press will ever hear about the write-off of this loan? Check DB's AR over the next few years for liabilities repaid through “consulting services in kind” or some other euphemism for “now you see it now you don't”.
Move over Mr. Samorand (sp?) you are a piker in this game… Is that where the bid rigging stops? You guessed it... Nope!
“THE PRIMARY AIM OF THE TRANSACTION IS TO DEVELOP NEWCO AND POSITION THE COMPANY TO PARTICIPATE IN FUTURE DIAMOND MINING VENTURES, SEVERAL OF WHICH DE BEERS IS PURSUING IN THE VICINITY OF MARSFONTEIN.”
Could this also be double speak? What for, you ask? Well, how about this? We, (DB), not only gave them (the entrepreneurs) our share of Marsfontein but we also threw in the rest of our regional prospects just to sweeten the pot.
But wait… Like your favorite infomercial, there's more! If you call right now (code for give us Alexkor), you get the handy dandy slicky nicky ain't I tricky neater cheater!
“NEWCO IS POISED TO EXAMINE THE VIABILITY OF CERTAIN EXISTING DE BEERS PROSPECTS WHICH ARE CURRENTLY LYING DORMANT “
What could this be code for? How about, we (DB's) through Newco, get to hold onto all our RSA properties (undeveloped pipes) that “the entrepreneurs” cousins in the Ministry of Mines were going to confiscate if we didn't shelter them through this scam?
It just keeps getting better and better…
“AND TO SECURE AND DEVELOP PROSPECTS IN ITS OWN RIGHT, WITH A VIEW TO CONTRIBUTING TO BLACK OWNERSHIP AND OPERATIONAL INVOLVEMENT IN THE DIAMOND INDUSTRY. THIS WILL FACILITATE THE EFFECTIVE TRANSFER OF SKILLS AND TECHNICAL EXPERTISE IN THE DIAMOND INDUSTRY TO NEWCO BY DE BEERS, “
Some might possibly interpret this as code for, Newco gets forgivable loans on each of the properties we get to participate in and, any “black” (shell) service company or contractor (owned by a second or third cousin) will by given the sweater contracts to develop these properties. Oh yes, we (DB's) will even set up some “black” (shell) marketing companies so we (DB's) can avoid punitive taxes and royalties and retain exclusive marketing rights.
As incredibly blatant as this is, I really could care less. This is Africa after all and was to be expected.
What really concerns me now in so far as SUF is concerned is that:
1. They have to play by the new rules if they want to stay in the game, and
2. The market will penalize us further because now 40% doesn't really mean what the number implies, and
3. New discoveries are probably not going to be exclusively SUF's
It brings a new meaning to the term “discount rate”.
I reiterate, SUF must vigorously pursue Canadian, if not NWT assets without delay!
On a related matter, I have to openly wonder about the Canadian implications of this DeBeers business tactic. Just how much of this “black” or “aboriginal” empowerment methodology they will attempt to introduce into the NWT.
That is a particularly sensitive issue up here and it is reasonable to assume that DeBeers will exploit any opportunity that they can to their advantage. That's business. The political and ultimately the social repercussions however could be divisive and devastating. I am sure they must be weighing carefully just how far they could push such a business tactic up here without finding the welcome mat withdrawn?
I can picture the marketing campaign now, DeBeers, friend of aboriginal Canadians, benefactor to the poor and downtrodden, champion of aboriginal rights and self government.
These are not dull times.
In so far as DB's wanting IAR % to get a foot hold into the Munn Lake/Back Lake play,...perhaps, but I would imagine (hope) that SUF included in their "buy-in", a "Right Of First Refusal" for any in-house sale of assets or stake transfer, open market purchases excluded of course.
Regards |
