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Gold/Mining/Energy : ASHTON MINING OF CANADA (ACA) -- Ignore unavailable to you. Want to Upgrade?

To: Ned Land who wrote (6074)	8/15/1998 5:04:00 PM
From: Larry Dawidowitz	Read Replies (1) \| Respond to of 7966

Ashton rocked by executive departures Ian Howarth Resources Editor Page 17 ( 562 words ) Thursday, 13 Aug 1998 From section: Companies And Markets Publication: Australian Financial Review Malaysia Mining Corp has seized firm control of diamond miner Ashton Mining after forcing the immediate resignation yesterday of managing director Mr John Robinson and chairman Mr Nobby Clark. MMC, which has a 47.3 per cent stake in Ashton, sought the resignations at a scheduled board meeting early yesterday. The resignation of Mr Robinson after seven years in the job came as a surprise to the market. However, company insiders said it was "not entirely unexpected" because of friction between the major shareholder and the chief executive in recent months. Sources said that Mr Clark, who had previously flagged he would step down from his role at some stage during the year, had felt obliged to offer his resignation when the mood of the board became clear. One major consequence of the move is that Ashton is now almost certain to move back into the diamond marketing cartel of the De Beers-controlled Central Selling Organisation. Mr Robinson initiated Ashton's breakaway from the CSO three years ago when the company opted to market its own diamond production, a decision MMC has long been unhappy with. The deputy chairman of Ashton, Mr Paul McClintock, has been appointed chairman while former CSR Ltd deputy chairman, Mr Bill Bennett, has been invited onto the board and will head its newly created corporate governance committee. The finance director, Mr Doug Bailey, has taken over as chief operating officer, a temporary role similar to that held by BHP's Mr Ron McNeilly, while the company conducts an international search for a new chief executive. Brokers and institutions were baffled yesterday by the MMC move, although most discounted a quick sale of its Ashton stake given its current share price weakness. Ashton shares yesterday eased 5› to 94›, well below the recent $1.15 rights issue and share placement at $1.23 in which MMC took up its full entitlement. The shares have fallen by nearly 50 per cent in the past year. Mr McClintock was chairman of National Consolidated and Plutonic Resources, both of which were controlled by Malaysian Mining Corp but have since been sold to other groups. Both sales were effected after the resignations of Plutonic chief executive Mr Ron Hawkes and National Consolidated chairman Mr Brian Heely and chief executive Mr Doug Curlewis. There was some speculation last night that MMC could be negotiating a sale of its stake in Ashton because of cash-flow problems caused by the collapse of the Malaysian currency and weak global commodity prices. MMC now holds six seats on the Ashton board, which consists of nine directors, assuming that Mr Bennett votes along MMC lines. Ashton is soon to bring three new diamond mines into production, which will generate a far higher volume of gem quality stone than currently produced by the Arygle mine in Western Australia. Mr McClintock said in a statement yesterday that Ashton was at a "turning point" in its 20 year history. However, he said there would be no change to the company's focus on diamond mining and exploration and MMC intended to maintain its shareholding. He was not available for further comment. KEY POINTS * Malaysian Mining Corp forced the resignation yesterday of two Ashton Mining Executives. * Friction between Ashton's chief executive and its majority shareholder MMC prompted the departures. * The miner appears certain to move back into the De Beers marketing cartel.

To: Ned Land who wrote (6074)	8/15/1998 5:20:00 PM
From: Jesse	Read Replies (1) \| Respond to of 7966

>>First, there's no doubt that aggregate demand for diamonds is in a tailspin.<< -- I have to ask how you came up with, "no doubt", Ned. I presume not from brief mainstream media, surely. ;) Things are rarely as they first appear, especially in this business. Cogitate that most any report coming from DeBeers can be considered part of a strategy. And they have long arms, including virtually all industry coverage and media feed. Undoubtedly, DeBeers and the CSO are a ubiquitous and persuasive force in the diamond industry. In looking at DeBeer's financial report, Martin, that is, Over the six months to June 30, diamond stockpiles increased by $US256 million to $US4.7 billion and the company's long-term debt rose $US224 million to $US1.1 billion, there too things aren't necessarily as they seem. Remember that DeBeers has drawn a line in the sand at 0.75 carats. It is stockpiling +0.75 carats and ignoring the smaller sizes, letting free market forces operate without smoothing intervention. DeBeer's requires huge stockpiles in advance of beginning new marketing campaigns so that the product is there to feed the demand created by the massive, & very expensive, advertising. - Also, DeBeers is sensitive to new Canadian production, and the runaway exploration in places like Alberta. Don't be surprised to see some negative marketing news coming from them over the next few years. ---- This is the big time. Cheers, -j :>