CautionI have been somewhat reluctant to post some possibilities that may be overlooked due to the enthusiasm on SGF and this board in particular.
I just did not want to get bashed as severely as was Kaiser and others.
The lawsuit has been called frivilous by some, but in my non legal reading of the suit it is a long way from being frivilous. The primary point behind the suit is to stop the JV Falc property from being mined in a similar manner to how the Star is being mined.
The Star operations are "unconventional" in traditional diamond mining as has been accomplished over 100's of years. That is not to say that in the very particular ground conditions and soils located at the Star property that it is not appropriate.
However, DB do not want a similar approach to mining taken on the JV property and is prepared to go to all lengths to ensure that does not happen. This is pointed out quite clearly in the "Minesite" feature article posted by "jackdaw, (post # 11443934). In particular note para #5.
An open pit / bulk tonnage mining operation MAY have some drawbacks in future operations, particularly if it were to continue for the entire field.
Also take special note of para #6 in that same article. When you perform the calculation based on the potential 240 milllion tonnes, you arrive at over 37 millions carats. That is simply huge. And as stated therein, "an open pit operation involving the whole kimberlite could be of a size to impact the world's annual diamond production".
DB wants all diamond miners to follow traditional productions so as not to affect the delicate pricing on a world wide basis.
That would be a disaster to DB who substantially controls the price of diamonds worldwide. It would in turn affect SGF and every diamond producer, wholesaler and retailer dramatically. The price per carat could spiral downwards accordingly.
Kaiser tried to point this fact out but has been dumped on by board members. Some may have been justified, but his concept is justified, especially when his members have made a dramatic gain on this recommendation from him, and he has now suggested all his members sell the remaining sharess at $7.25.
Just how much of this "general market correction" is attributable to the current SGF decline, and how much is the lawsuit, is conjecture.
In short, I simply caution all the good members to make sure they at least look at all the potential scenarios for the future.
In summary, I was very long SGF, but was stopped out yesterday, and now await another opportunity.
otrab