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Gold/Mining/Energy : Trump's 12 Diamond Picks, Discussions Limited -- Ignore unavailable to you. Want to Upgrade?

To: E. Charters who wrote (2107)	6/7/1999 9:18:00 PM
From: George J. Tromp	Read Replies (1) \| Respond to of 2251

Er Tomato, er, Eric, Er who ever. I would prefer to take a conservative approach, those numbers were gleaned from Rex, not I. However, it is probably difficult to determine the costs involved, seeing those costs arent differentiated in competitors annual reports, but I havent really searched the issue in depth, but plan on it when time permits. I hadnt heard about the peach colored diamonds Eric, you may be right. There was some softening of the market last year, with a two pronged hit, Asia sales being down, combined with anticipation of new production. Asia had been a big growth center for DeBeers expansion. I guess for one to a long range picture going into 2002, he would have to anticipate future production, mines phasing out, then estimate market growth. DeBeers can still muscle the market, whether it be thru marketing agreements (Alrosa, BHP) or political strong arming. I really dont expect the balance to change, maybe the branding issue will be indicative of the wave of the future. DeBeers no doubt would love to market more efficiently in the US markets, given 45% of the value ends up in these markets. I wouldnt really have a problem buying a diamond over the net, if proper certs were enclosed, and etched from the mine. Which BTW may be the case concerning Rexs stones out of Bellesbank. If Rex produces the diamonds, transportation costs will run about 100US to any market in the world. These arent my figures theyre Rexs figures. Sure Rexs Bellesbank stones would be a niche market starting out, however, being a visionary, I suspect in a few years Eric, many changes may occur. DeBeers, I am hoping will not cannibalize their own market place, but will seek to keep independants in line, or near term producers, some methods are tweeking up production at Orapa, continue to run the Jwaneng 7 days a week (Botswana Goverments pulls the strings on that pipe). Keep Alrosa in the fold, (who will lend the Russians money for developement.?) Knuckling under by Ekati, as well adds to the reasoning that Abers production will be absorbed as well. The pivotal player RTZ, will want to maintain its presence, and the Argyle extention is good til 2000 before more funding is needed. Aber will replace the Argyle. Let the market become competitive, branding is CSO answer to laser filled diamonds. I would gladly pay for a nice Rex Diamond from Bellesbank over dealing with some jewelers which are passing off stones less than the quality and size they have reported. The new word at the cocktail parties in the future may be "Oh Alice, where did you get that big sparkling diamond? Alice will reply, why Elizabeth it came from a place called Snap Lake, or from the Rex Mine in S.Africa. It then becomes a diamond which takes on history as well as purity. Have to go Eric, Regards George