Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Shaw who wrote (4274)	8/10/1999 1:22:00 PM
From: PHILLIP FLOTOW	Respond to of 7235

If this news article is correct, it hasn't been considered by the people who buy DeBeer's stock, which recently reached a new 52 week high. Tuesday August 10, 7:29 am Eastern Time De Beers interims seen under pressure JOHANNESBURG, Aug 10 (Reuters) - South African diamond firm De Beers is likely to post disappointing interim results on Wednesday because of lower investment income from Anglo American (quote from Yahoo! UK & Ireland: AAL.L) and disrupted gem exports, analysts said on Tuesday. Analysts contacted by Reuters estimated De Beers' headline earnings per share in the six months to June 30 at between $0.75 and $1.10 versus $1.06 in the corresponding period last year. The world's largest diamond producer is forecast to maintain a dividend of 27.4 U.S. cents. Shares in De Beers traded 0.61 percent higher at 166 rand by 1045 GMT, slightly off a year-high of 167.80, which was sparked by strong diamond sales by De Beers' London-based marketing arm Central Selling Organisation (CSO). Key to the actual results will be the level of dividend payments made by newly London-listed Anglo American Plc, which has changed its corporate year to end on December 31 from March 31, analysts said. The interim payment by Anglo, which is 35.4 percent owned by De Beers, will cover only the three months to December, 1998 rather than the traditional six-month period to March. Of equal importance will be how De Beers' diamond account has been harmed by a halt to its South African diamond exports since March after a dispute with the government appointed diamond evaluator (GDV) over pricing, analysts said. The diamond account at the world's largest diamond producer came in at $334 million in the first six months of 1998. The face-off with the GDV has not been resolved despite a breakthrough at the end of June which enabled the firm to export roughly 70 percent of its last export consignment. ``We are expecting the results to be poor,' said James Allan, a diamond analyst at Johannesburg-based Barnard Jacobs Mellet. Allan forecasts headline earnings of 75 cents. Other analysts pointed to the robust recovery in the world diamond market as acting as a counter to expected lower dividend income and lower diamond account due to the halt in De Beers' shipments from its South African operations. The CSO posted a 43.9 percent year-on-year gain in sales to $2.447 billion in the first six months of the year, fuelled by strong U.S. retail sales, a recovery in Asia and low inventory levels in cutting centres. De Beers controls the bulk of the world diamond market through the CSO which buys and stockpiles diamonds when demand is weak and sets production quotas. Hilton Ashton, analyst at BOE Securities, said robust CSO sales would compensate for the disruption in export margins owing to the GDV row and lower dividend payments from Anglo. Ashton forecast headline earnings of 110 cents and a higher dividend of 33 cents. ``The diamond market itself has exceeded most people's expectations. Japan and South Korea are showing signs of recovery earlier than thought and the United States is still going strong,' said Keith Bright at Fedsure Asset Management. ($=6.17 rand) PHIL

To: Shaw who wrote (4274)	8/10/1999 1:49:00 PM
From: DIAMOND JIM	Read Replies (2) \| Respond to of 7235

Hi Dean..the 'spear has some problems too for sure. MPV's news has not been received well either today. We must be near some kind of bottom here. SUF's numbers and the negative FP article must have triggered this bout of renewed selling. Yorkton starting to buy however. The negative sentiment is about as high as I have seen here for over a year so I will take the plunge and average down today. Regards DJ