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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Chas. who wrote (26078)	7/7/2000 12:29:15 AM
From: Elizabeth Andrews	Read Replies (2) \| Respond to of 26850

Well, I'm not sure about that. If you look at Debeers balance sheet, this acquisition doesn't make a lot of sense unless you consider what teevee said many months ago (stone quality). There is no reason to make a C$ 260 million investment without this. Combine this with my comments when the stock was C$ 4, a while ago when the the sample methodology was questioned by many. I think teevee is correct. Obviously, Debeers understood what the results meant and I didn't, (aside from buying 500 shares when it dipped). There is something special about this deposit and Debeers knows that. I was long and have sold but you have to question the value of what Debeers sees. It can only be positive and the company is probably worth more than $4.25 but to whom? Is Aber next? Or does Aber acquire WSP?

To: Chas. who wrote (26078)	7/7/2000 6:31:33 AM
From: Bill Jackson	Respond to of 26850

chuck, The last thing Debeers wants is more diamonds to hit the market. They are already totally stuffed with them. They will of course mothball this deposit while doing the minimal annual work to keep their property in good standing. Those who sell now will lose the downstream potential that this deposit represents. Debeers knows this and is trying a pre-emptive strike. It is worth three to five times their offer to keep it off the market. Adding it's annual volume will force DeBeers to spend more than $250 million annually to mothball it's production. Cheaper by far to buy it now, even at $10-15 per share, The $4+ offer is their initial salvo at the low end, designed to start the auction at a lowball figure. This could go to $20 as that mine is worth billions. Bill