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Gold/Mining/Energy : Canabrava Diamond -- Ignore unavailable to you. Want to Upgrade?

To: Dave Pavlik who wrote (1142)	4/19/1999 1:55:00 PM
From: russet	Read Replies (1) \| Respond to of 2402

Dave, Aber's share is 40% and the value is 60$US/carat. 14 billion dollars turns into $2.4 billion US sales to Aber based on diluted mineable reserves only, over the life of the mine. Capex is currently running at $875 million and climbing. Operating costs est. at average $66 per tonne kimberlite or about $20 per carat (which does not include sorting and valuation of diamonds, marketing costs,royalties to governments and property vendors, reclamation or head office costs). These are early 1998 figures in Canadian dollars. Mine life is 16-22 years at annual ore production of nominal 2.0 million tonnes per year. 2.0 million tonnes/year * 3.6carat/tonne * 60$US/carat * 40% to Aber = $US175 million/year sales. Of course they have lots of costs to take off as noted above,... including interest and debt retirementand taxes. Just taking off the mining and processing costs of $20 Cdn or $14 US means their profit net of mining and processing is still $US 134 million/year. It would be interesting to see Canabrava's costs and sales projections for the various projects in Brazil. russett