African Diamonds - The Stock of 2004

The AFD shareholders have had a very quiet Christmas. Let's hope that you are saving your strength for the AGM. I wonder how many reporters will be there this year? Maybe we should remind them of what they missed last year:

Geologist has dig at fellow African Diamonds director
By Christopher Hope, Business Correspondent (Filed: 20/01/2005)
Daily Telegraph

African Diamonds' annual meeting descended into farce yesterday when one of the directors of the listed diamond miner started rowing with the chairman in front of 40 startled investors.

The meeting, at a hotel in the City, had proceeded uneventfully for over an hour. Then Leon Daniels, a large shareholder and former director, asked if the company had received price-sensitive information from joint-venture partner De Beers about a shared interest in Botswana in late September.

John Teeling, the company chairman, said: "We had no credible information from De Beers." At this point, Mark Scowcroft, a fellow director, said he had alerted Mr Teeling and James Finn [another director] on September 30 that De Beers had found some very promising results from Botswana.

Mr Teeling said: "The information was a conversation – it was not official information." Turning to Mr Scowcroft, he added: "I find it unacceptable that this was not raised at a board meeting last night. It was a phone call that came in the course of business."

As the shareholders looked on in silence, the two men continued their discussion. Mr Scowcroft: "You issued an RNS [regulatory news statement on October 6, saying the company `was not aware of any specific reason' for the movement] without consulting anyone beforehand." Mr Teeling replied: "I did not."

After 10 minutes, Mr Teeling's head was in his hands and Mr Scowcroft was staring ahead in silence. Mr Teeling told the investors: "I apologise on behalf of the board for a board member's behaviour in this way. I find it surprising. Washing dirty linen like this is not a good idea. I am disappointed, Mark, that you have done this." The meeting adjourned soon after, and another board meeting was hurriedly called at which Mr Teeling asked Mr Scowcroft to resign. Mr Scowcroft, who is a substantial shareholder, refused to quit.

Speaking later, Mr Teeling, who chairs three other Aim-listed companies, said: "Never in my 30 years' experience have I had a meeting like it. The independent director will look into the matter. This was designed to embarrass myself and Jim Finn."

Mr Scowcroft said he had no choice but to stay on at the company: "There are five people on the board and I am the only geologist. If I resign it could badly affect the share price."

African Diamond shares closed down 4 to 57p.


I see the share price has still not improved much. (mind you, neither has EPD yet!)

8 weeks - Are you sure John?!
Are you absolutely sure?!