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Gold/Mining/Energy : ABER RESOURCES -- Ignore unavailable to you. Want to Upgrade?

To: Famularo who wrote (803)	11/5/1998 5:35:00 PM
From: teevee	Read Replies (3) \| Respond to of 2006

Hi FastFrank, <<<<<Aber is well financed for anticipated expenditures in 1999 and is exploring debt-financing alternatives for the completion of the Diavik Diamonds Project.”>>>>> Would it be reasonable to interpret the above statement to mean that: 1. The Diavik project will not likely proceed in 1999, and 2. They haven't yet been able to convince anyone to provide financing for the balance of their share of development costs(I guess it would be over $300 million). I suspect that lenders/bankers/brokerage houses will not move forward until they see at least two quarters revenue numbers from Ekati so they can better determine the risk before any more money is invested on a debt and or equity basis. This would be after about the second quarter in 1999. An additional "wild card" risk is that Snap Lake will be proven to be the "diamond discovery of the century". Bulk sample results will likely be out by late may, 1999. If early speculation here turns out to be true, which I already believe it is, Diavik could well be rendered uneconomic by the presence of a new world class, high grade, long life diamond deposit. Luckily for you, this would eventually translate into higher prices for Aber shares(aber has ~30% interest in Snap Lake), but the leverage would be in Winspear. Sound to me like there is SUBSTANTIAL project risk in Aber at these share price levels. Regarding your post, it seems likely to me, that you and your investment group partners should have no problem filling the balance of the ABZ share position you wish to have at lower prices if you are patient. regards, teevee