Archive for August 3rd, 2008

source: The Israeli Diamond
03.08.08, 09:50 / Mining

RBC Capital Markets is downgrading its recommendation on African Diamonds to ‘Sector Perform’ from ‘Outperform’, following the dispute with De Beers over the timing for developing the AK6 diamond mine in Botswana.

RBC reduced the target price to £0.70 per share from £1.40 per share.

“While we remain positive on the project, pushing production out by two years and increasing the capital to $380 million (including escalations) has a negative impact on the DCF (Discounted Cash Flow) of African Diamonds’, 28.4% in the project,” RBC Capital market said in a research note to clients on July 28.

RBC analyst Des Kilalea warned in the note that the reasons given by De Beers for delaying the mine, namely potential power shortages, could also have a negative impact on other juniors in Botswana, such as Firestone, which is examining the development of a mine on the BK11 kimberlite near AK6.

Under the terms of a mining licence granted to [continue reading]

source: IOL
August 02 2008 at 12:17PM

Inflation’s up, so are interest rates and the price of electricity, but at last something is coming down to ease the pressure on consumers. A litre of petrol will cost 27c less from next Wednesday.

The wholesale price of diesel would also be cut, by 16c or 17c, the minerals and energy department said on Friday.

But for people who rely on paraffin for heat and light the news isn’t so good. The wholesale price of paraffin will increase by 3,4c and the single maximum national retail price will go up by 4c.

The actual decreases in the pump prices of all grades of petrol will differ “due to the rounding of pump prices to accommodate the dispensers that cannot display four-digit numbers, eg, in Gauteng, the pump prices will [continue reading]

source: News24
02/08/2008 22:30 – (SA)

Johannesburg – President Thabo Mbeki was allegedly paid R30m by a German shipbuilding company to guarantee it would receive a submarine contract in South Africa’s multi-billion rand arms deal, said the Sunday Times on Saturday.

The newspaper said in an article to be published on Sunday, that a secret report compiled in 2007 by a United Kingdom specialist risk company revealed the deal.

Mbeki allegedly gave R2m of the money to Jacob Zuma and the rest to the African National Congress.

The consultancy was apparently commissioned to write the report by a leading Central European manufacturer to investigate the business practices of shipbuilder, MAN Ferrostaal, which had launched a hostile takeover bid against it.

MAN Ferrostaal, which led the German Submarine Consortium (GSC), won a more than R6bn contract to sell three submarines to the SA Navy.

Promises of project

In return it apparently promised to build a R6bn stainless steel mill at [continue reading]