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 : Canadian Diamond Play Cafi -- Ignore unavailable to you. Want to Upgrade?

To: Chas. who wrote (2625)	3/13/2005 12:54:09 AM
From: The Vet	Read Replies (1) \| Respond to of 16205

it will take a Billion Canadian dollars to turn it into a mine... chuck, in fact that's a plus for Aber involvement... Aber managed to fully finance their 40% share of Diavik on pretty good terms and retain control of the sale of that 40% of the output. They would have no trouble now financing a similar share of Gahcho Kue in exchange to retaining the rights to sell the diamonds themselves. DeBeers might even like the idea as it is much easier to find $600 million than a billion. I'll bet that they would be happier to deal with Aber than Rio Tinto or BHP. Actually Aber and Debeers do seem to be able to do mutually acceptable deals. It has De Beers purchase of Aber's share of Snap Lake that provided the cash that allowed Aber to maintain their independence in the Diavic deal. At the time there was plenty of discussion along the lines that DeBeers didn't want to let Rio get too strong in the diamond market and by allowing Aber to remain as a smaller party with their own independent marketing was in DeBeers best interest. DeBeers are big and well financed but they are faced with a lot of cap ex right now with many developing projects. MPV could never raise the capital for their share but Aber could. That would allow DeBeers to bring the project forward if they only had to find their share of the capital required. DeBeers could always buy it back from Aber after the mine was producing.