Diamond Selling PricesLook fellow shareholders. I called the refi recently, post dated November 22. #27015788.
I get the pigeon feather in my cap! This is ALL secondary issues here.
The company has not met the bank covenants because the diamond SELLING prices are SO FAR off the Feasability Study that even with costs coming in right, and improved grades over the FS, MPVD is not hitting the OCF numbers high enough to have the bank reserves, pay the principle payments, and pay a divie. and pay exploration and sustaining cap-ex.
As part of the company bank renegotiation, the company WAS/IS supposed to supply the bank syndicate a RECONCILIATION of the selling prices actually achieved verses the FEAS Study.................As a shareholder, you want to see this study, have the company post it on the website, get them to file it with SEDAR, give you more details about it.................THIS IS THE HUGE ELEPHANT IN THE ROOM.
The secondary issue is the fancies and specials auctions with your operating partner DEBEERS. You NEED more details from the company on every quarter report, how many carats are being sold this way, at what prices, and what margins we are earning on the auctions we bid on, verses what priced debeers is actually paying us in these auctions.
Then you CAN see if the company data on a Q to Q basis is coming close to the report to the bankers and the FEAS study.
Ie............IF there are only two parties bidding in a private auction, who is to say that the parties involved are not FIXING the bids on all the fancies and specials, which MIGHT account for the low MPVD prices realised, getting left with the remainers split 50/50, and losing all or almost all the private auctions at knockdown prices to DEBEERS!!
ie ALL I ever saw about the auctions was one line in the financial statements about SALES with little or no managment explanation about how many carats, at what prices, sizes, color, clarity etc etc.
Riddle me this...........................How does a Irishman controlling both the minority shares, the BOD, and the management say "FU^K YOU" to the minority public stockholders?