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Bluebottle, yr comment "someone stands to gain significantly when it resurfaces..."? Yes, but not us. The lesson for me is never deal in jurisdictions that you suspect are crook, even if they claim to be law abiding. My ISA is worth less than 10% it was 2 years ago mainly due to me willingly investing in African enterprises that I thought were run by people I considered to be good. There has to be an announcement soon even if only to say all negotiations are over & DCP enters liquidation. Whilst there is silence & no announcement appears, there is hope. But as I said some long time ago, an investment strategy based on hope is a c##p strategy.
I too have written off my investment which is a great shame and a salutary lesson for me. All of this nonsense could have been avoided by some pretty basic steps, the upshot is: Workers going unpaid Shareholders absolutely stiffed South African investments utterly tainted - I can't trust they won't arbitrarily ruin another company Management have serious questions to answer, particularly if this goes under and they manage to get a profit out of its rebirth. Remember; unless the technical reports are all frauds there is serious wealth in the dirt under Lace, by the destruction of the legal entity controlling it someone stands to gain significantly when it resurfaces...
Well we might still get an update by Fri 31 March? Or may be next week......
I tawt that there will be a bondholders meeting first on 5th april http://66.8.16.130/SENS_20170314_S382634.pdf Then i assume the BRP report will be finalised and then 2 more weekz to publish it. We have till May 14th untill dcp gets delisted or can that be extended too. A lot of finalising stuff going on behind the scenes I hope. Silenceeeeeeee yo all.
Yes we are being treated like mushrooms - kept in the dark and you know what? I do not want to speculate but am deeply worried.
The silence is deafening. What are they actually doing to improve the current situation?
I think there should be an RNS next week by or before Fri 31 March providing some kind of update with the BRP, ongoing AMCU talks, etc.
An opinions when we might hear something?
If the BRP are doing there plan to get the mine back into production they should allow Paul L to get on with the repair work. He must be tearing his hair out.
This is a major problem? Shareholders are being told diddly squat?
Have they started repairing things underground?
@Jaf -"DCH can exclude AMCU if they feel they are not getting anywhere, then I have to ask why they haven't done so by now?" - Hi Jaf, it's impossible to speculate on how close or distant an AMCU agreement may be, however your 2nd point, that politicking behind the scenes is prevalent makes sense as union talks always take on a political air driven by personal gain for union leaders. In answer to your question above, I submit the following; The Company clearly considers mutual resolve in high regard just as you, I & other stakeholders do and it would be foolish to terminate AMCU negotiations prematurely, especially as continued talks aren't going to delay publication (in due course) as eluded in the 28 Feb 2017 update. In the interim every avenue towards mutual resolve should/must be explored, not only in the interest of uncompromised business rescue implementation but also from a political sensitivity point of view. For now we await publication of a restructuring plan and should negotiations lead to agreement ahead of publication then it's a huge positive, if not, then negotiations will continue. ATB
Hi Mac, long time since last & trust you are well? Yes I'm home for short while and expect heading to NY, Boston & Savannah next week for +- a fortnight? ATB
Valency .. All comes clean in the wash , Geo politics !! as well .. You back on Terra firma .. x mac
Valency, Jaf - My assessment is similar to yours. Have a feeling an agreement with AMCU is not far. Either way we should get an update before end of March (latest), whether DCH include / exclude AMCU from the talks in the interim in order to follow through with BRP and move to implement the plan ASAP. We need to the operations at Lace soon so we can start finding those chunky PINK multi-million $ diamonds. 🙂
Hi Valency, there seems to me to be too many groups with hidden agendas (starting with why IDC dragged their heels in the first place) that it's hardly worth speculating what the future holds, IMO. The problems of a lawless jurisdiction, so to speak. If PL is protecting the interests of his shareholders then he is in a fairly strong position in view of the tech knowledge to get the mine back working together with avoiding the threat of further flooding from the old workings should a break through inadvertently occur. Watch this space.
Jaf, indeed it should be priority on everyone's list.... except of course the AMCU. Allow me to put forward the following for consideration & discussion - It's intriguing that initially an 'in principle agreement' with the AMCU had been agreed and only the IDC were waited upon. It's flip flopped due to IDC dragging their heels which led to material changes being sought by the AMCU. Finally the IDC have agreed to the restructuring plan & post commencement financing but have subjected their agreement to the proviso - "The IDC Agreement is also subject to entering into such an agreement with AMCU, unless otherwise waived by DCH". The proviso contains an important addendum - "unless otherwise waived by DCH"; This is crucial as it allows DCH the right to waive an agreement with the AMCU in the event of a deadlock. That of course depends on my interpretation being correct? DCH current concern is for labour stability to avoid a compromise of effective repair & remediation thus it would be in best interest that the Practitioner, DCH & AMCU reach an amicable agreement, though such agreement is not a determining factor to proceed with publication of Business Rescue Plan to voted upon. The following paragraph refers - "The IDC Agreement provides for a LDM PCF Loan to be made either in addition to or as a substitute for the Placing, the conditions for which have yet to be met. It is intended pursuant to the IDC Agreement that the BRP will in due course publish a Business Rescue Plan to be voted upon by the LDM creditors that will provide, inter alia, for DCH (and therefore the Company) to maintain its controlling shareholding in LDM and to seek sufficient additional, Phase 2, finance within 90 days of publication and to successfully conclude the Business Rescue process. The BRP may also continue to solicit expressions of interest for a strategic investor(s) in LDM". - I would thus anticipate a published "BRP" to be voted on in the interim either prior to concluding negotiations, in conjunction with or without final AMCU agreement? Public interest score table applies and AMCU are inconsequential in terms of total affected parties vote. As stated previously, stability is a concern during repair & remediation and the most favoured outcome is to have all parties pulling in the same direction in order to achieve the same goal. Look forward to your views. ATB
Overview of the Diamond Market 2016 through early 2017 - http://www.thediamondloupe.com/articles/2017-03-10/paul-zimniskys-overview-diamond-industry-2016-through-early-2017
Jaf, you present a "no resolution" liquidation scenario in which case that'd be a reasonable assumption & if that be the case then shareholders would receive only that which remains after labour, senior secured creditors, Bondholders & unsecured creditors etc. have been paid from asset sales proceeds. Currently two possible scenarios exist, so what would you suggest the case might be if a resolution is agreed? ATB
Cheers jaf. Guess we're playing a lovely game of wait
Finally made it home & have a little time to catch up. Whogarth, my view exactly. The AMCU only represent registered members & they don't speak for 'other' unions nor non-affiliated members. The idiotic AMCU strike (re appointment of shop stewards) that took place a couple of years ago achieved zero for union members, hence union leadership being openly criticized as self serving by DCP BoD's. If memory serves correct, news articles mentioned around 40 members participated in the illegal unprotected strike. Time has marched on & additional employees have since been appointed to establish a 3 shift workforce but if that figure or even double that figure (80 - 100) makes up current AMCU representative membership at the mine, then I think it's worth considering that the Practitioner & the court would in the very near term have to make a decision whether to proceed without the AMCU, in the much bigger interest of the remaining non-affiliated labour force, investors & creditors alike. "One can lead a horse to water but you can't force it to drink" On a different note, an update to Bondholders re 5th April meeting in regard to 2 x special resolutions as relates to further waiver of payment obligations until end of BR proceedings. It contains a brief summary of events leading to rescue proceedings as well as an action list & estimated time spam required to complete restoration & repairs. - http://www.sharenet.co.za/v3/sens_display.php?tdate=20170314172300&seq=55 ATB
Anyone have an inkling as to when this might be resolved?? Or which way sp will go should resolution be reached thanks
whogarth, You have a point. As in the past not all unions have agreed with AMCU. I don't know how it all works while company is under BRP. AMCU are the bullies...and as per the recent court case, sooner AMCU dominance is crushed, sooner they will come to their senses. SA cannot do business like this and they will get no FDI in the country while AMCU act like bullies. Govt needs to protect the business as a whole, it's not all just about unions and their unjustified rights. AMCU need to be taught a lesson here. Totally absurd.
The workforce are not all members of the AMCU and why is it not possible to get some of the remainder or subcontractors to begin with the remedial work to get the mine operating. IN THE INTERESTS OF ALL