GREY:PGDIF - Post by User
Comment by
mill44on Mar 11, 2015 5:36pm
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Post# 23511320
RE:Bad news on the supply front.....
RE:Bad news on the supply front.....Anglo has an interesting problem. Debeers, according to the analysts, is rapidly becoming the flagship unit in the company. It would make sense for them to invest in diamonds. you would think, but any investment would require 4-5 years to bring in any revenue and possibly even more investment before that would happen. Can they afford that? Or better put it, would the shareholders go for that? I think, like most companies, they will go the way of preserving cash to ride the whole cycle out and only spend money on something that yields instant benefits. I would not bet on them making any acquisitions in diamonds before the tide turns in the resource sector.