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: The Vet who wrote (2657)	3/13/2005 2:49:46 PM
From: WillP	Read Replies (1) \| Respond to of 16206

<b.Wow, this is getting more complex... If a deal is ever done we should all charge the various companies a consulting fee just like the big banks do. ;-) LOL! Exactly. Some comments: ...a billion here, a billion there.... soon it starts to add up to real money! That's the point. If the real money leads to a steady stream of real money at a profit, that's a good thing. If it doesn't, its a bad thing. You guys are suggesting that investing money in a Mountain Province takeout would be a good thing for Aber. Why therefore is building a mine not more a good thing for De Beers? It doesn't have to take over Mountain Province to get all of the diamonds. Secondly instead of having to borrow a billion they get the mine built a lot sooner and only outlay $350 million. Ahh, I see. The billion is with the takeover, the $350-million is no takeover, just their cost of the mine. Well, my counter is that it's $600-million, not a billion for De Beers to get all the Gahcho Kue diamonds and realize 60% of the profits, after it deducts its marketing and management costs. I think that's more favourable to them, especially since the additional $25-million comes back to them, and at a decent rate of interest as well. You see, I'm still looking to find an adequate incentive for De Beers to do a takeover at a healthy premium. I'm not really seeing one. On raw figures, not much, but if... Well, I don't see much in it for an Aber shareholder either, beyond your "ifs". Tiffany still gets the bulk of Aber's quality diamonds, by the way, so Harry Winston is still buying on the market. Still, Aber isn't going to subsidize HW's diamond purchases, was it still only owns 51% of the retailer. Regards, WillP