Petra Diamonds: Post Merger: What's Next?


Hectorp - Thu, 21 Dec 06 :

Will you? Wish I were so technically gifted. There is clearly considerable upside in the Inferred category, but its only.. inferred.
- Note the considerable clauses that must be completed re DeBeers formal ownership, the licence may well be in place but only if The Mining Offic of the Government and DeBeers complete the outstanding matters will the production commence ( ie PDL will most likely be able to walk away from it).
Now - why did they buy what someone said was not a very economic mine?
several possible reasons, a stated reason is to increase Petra's Profile
( becoming the main mid-tier diamond producer and so IMO, a magnet soon for a takeover?) one might be the new relationship with the Empowerment group ( 30% partners) and the way the financial situation might - I only say might - have altered the economic profile in favour of PDL.. ? and that PDL can process and fine their own rough output ( in London) however there is a 15% tax on exporting roughs - no doubt Petra believes the London outfit will increase parcel value considerably once the stones have been refined?
so as many questions as answers!
H.

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