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To: peter matson who wrote (23322)	7/19/1999 9:23:00 PM
From: skelly	Respond to of 26850

Your reasoning makes sense. However do not underestimate debeers. Maybe they know something that we poor retail buyers know nothing about. The next 2 months will be very interesting for the NWT diamond plays. cheers

To: peter matson who wrote (23322)	7/19/1999 9:36:00 PM
From: average joe	Respond to of 26850

DeBeers learned their lessons about this type of play in Lesotho, and this is no Lesotho. aj

To: peter matson who wrote (23322)	7/19/1999 9:36:00 PM
From: Natedog	Respond to of 26850

Thank you Peter, great views!

To: peter matson who wrote (23322)	7/19/1999 11:29:00 PM
From: Confluence	Respond to of 26850

Hello Peter, De Beers has a marketing deal to with Ekati for 35% of production for three years. De Beers has apparently held talks with RTZ about marketing Diavik diamonds, though Aber retains the rights to sell its share independently. Clearly, all large producers of diamonds recognize the stability and value in the management skills of the CSO. Diamonds have easily been the best performing commodity over the past 2-80 years. Unlike OPEC, the few large diamond producers, including the Russians, and the governments of Botswana and South Africa, recognize the need to manage supply to stabilize prices. The smaller producers are induced to "cheat" the market by offering their production outside of the CSO channels, much like many OPEC members do. Whether De Beers is interested in WSP remains to be seen, but will likely be guided by the potential production levels. For instance, if WSP can produce 3,000 tpd x 300 days x 175 cpht, or a rate of about 1.5 million carats per year for many years, well then De Beers may have an interest, and it may be in WSP's interest to at least do a marketing deal with De Beers (say, for mine financing -- imagine, no dilution!). However, this is the information that will be developed over the next number of months/years, and it seems unlikely that either side would tip their hand. Until it becomes a competitive situation, expect De Beers to sit on the sidelines, and maybe even contribute to the native and environmental groups in the area. Just my opinion, Confluence