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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Fairchild who wrote (3954)	7/10/1999 10:00:00 AM
From: gemsearcher	Read Replies (2) \| Respond to of 7235

Hello Bob. My (basic) understanding is that under the marketing agreement , the JV sells the diamonds to DB at the prevailing DB price book valuation. There is a mechanism for dispute resolution if the JV partners disagree , for example , on the categorization of the rough diamonds in arriving at those prices , but I do not believe that has been invoked. CJ said at the AGM that the marketing agreement was supplemented/clarified recently to make clear that the sale procedures summarized here are unaffected by the GDV/DB dispute - the sale is not dependent on the availability of an export permit/licence for the diamonds. Your question as to whether the JV partners are entitled to an "uptick" if it is subsequently determined that the diamonds were undervalued is a good one and I will try to find out and post here. Of equal if not greater interest is the question of when DB will upwardly revise its price book to reflect the resurging diamond market. As for the trading pattern of late , I'm reminded of that Troggs tune - "There's something happening here , what it is ain't exactly clear". The Com.D. $5.50 Wall has been tested twice in the last couple of months and has proven firm. Proven resource of Leopard fissure nearly doubles from 2.7 to 4.6 million tonnes (yes folks , that's an additional 1.9 million tonnes x 60 cpht (recoverable - 73 in situ) x say U. S.$100/carat and the share price goes down ?? Hmmm... Regards.