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 : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Lorne who wrote (19043)	5/4/1999 3:21:00 PM
From: teevee	Read Replies (1) \| Respond to of 26850

Lorne, FN has at least $40 million invested in Aber now.....Also, eastern brokerage firms previously underwrote Aber for over $100 million at $14.00 per share if I recall correctly.......they have alot of money tied up there with little apparent liquidity that I can see.........Aber's "achilles heal" is that it has a minority working interest at Diavik, just like it does at Snap Lake(Aber is not the operator aat snap Lake or Diavik).....remember that the onus is on each working interest owner to maintain their percentage interest as specified in the joint venture agreement....by the way, if RTP gave Aber a cash call for their share of the projected $800 million capital costs, and Aber couldn't get all of their 40% share of the money by the deadline, and then RTP proceeded and deemed Aber's dilution as per the formula in the agreement, do you think that Aber would also sue RTP claiming unfair treatment under the equity laws? In this case, no doubt Franco Nevada would be a lender of last resort.....do you think that Franco Nevada would insist on a royalty, plus some sort of preferred share, plus additional common shares? In either of these scenarios, tell me where the potential upside for Aber shareholders is? I would like to know....Also, I doubt Aber could get a conventional loan without at least a five year contract for their share of production....the only likely organization that could provide such a contract is the CSO....why would DeBeers give Aber a contract? The short answer is that DeBeers wouldn't provide a long term contract unless forced too AFTER Diavik in production, and the market has gauged the product by a few sites.....so.....all in all, I don't think the situation looks very good for Aber at this point in time...... regards, teevee