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Good evening/morning. A unanimous vote on both resolutions is quite significant considering that Bondholders are senior secured creditors. As there is currently nil post commencement finance in place, Bondholders along with the IDC both rank in 2nd place if liquidated, following immediately behind labour during the administrative process. This ranking affords Bondholders a relative risk averse position that would most certainly see them receive 100% repayment + accrued interest if liquidated. A split vote or even hesitant percentage would indicate weakened support for the Practitioner/BoD's strategy & ability to successfully restructure the mine. Both the Practitioner & PL would've addressed Bondholders at the meeting and updated them on current events & forward strategy and Bondholders would've weighed forward risk against their current ranking. I suspect we are likely looking at contractor based rehabilitation of the mine along with a few key reappointments required to implement & oversee repair & remediation. Financing would be the next vital aspect required to commence repair & remediation. I think a detailed update is due and it is a gross error to underestimate creditors & investors resolve to bring the mine back to into production. Watching this space with keen interest.... ATB
CRB14, apology but seems private messaging only available on premium services. Let me know your email or local mobile & I'll message or whatsapp you. If you'd prefer not posting, we could arrange to meet up for coffee somewhere after I return? ATB.
MrP, aplogy for late reply but late finish with class for the day. Thanks for emailing PL & hope you reminded him of our contractor rates discussion? Bondholders met today 5th April @14:00LT in Jo'burg (13:00UK). That's yesterday for you due my current location in USA. Hopefully an early morning update 6 April to advise Bondholder rollover resolution? Otherwys, used to enjoy a round of golf at Al Hamra occasionally, that was before life evolved into a crazy race. Lol. CRB, will do... ATB
Better select good timing MrP, I'm not always in control of my own movements but certainly look forward to meeting up with CRB & yourself whenever possible. Can't quite understand why everyone is sleeping at the moment? Here's to a positive Bondholder rollover agreement which would signal an alternative restructuring plan devoid of AMCU? Not too long ago I asked if anyone here felt that restructuring may well pesent a silver lining in that it may be an opportunity to clear out dead wood & blood sucking parasites. Hopefully some good news in the form of a Bondholder rollover to come. Jaf, don't chuck in the towel too soon mate, we may need your retired IT skills to revamp the sad old DCP website. Until tomorrow. ATB
I'm on a short classroom break so keeping it short. PL is very aware of current low underground specialist contractor rates as it formed a broad part of our discussion. Negotiations had to persevere until it was certain no resolution would be agreed even though the protracted delay is detrimental. A decision has been taken in terms of final retrenchement of all labour at the mine. I can't foresee any other short route to rehabilitate underground workings other than utilising specialist contractors at this stage which would require an initial cash injection +-GBP1.2m to finance the now defunct placing. Mr+ & all, I think we could gauge the BRP/BoD's forward strategy once an update in respect of Bondholders rollover is recieved in next couple of days. A favourable vote may signal that an alternative strategy has been put forward to Bondholders for consideration? A race does not simply terminate because one is tired & as long as options remain so will perseverance & determination to reconstruct the asset. Wait for the Bondholder update as key to BRP/DCP forward strategy. CRB, thanks for the offer & I'm still in USA but perhaps we could meet up someday as I'm based in Dubai. Thanks to all those that replied for your interesting views & offers of resolve! ATB.
Many a true word spoken today & "Ineptocracy" sums it up! Some are willing to work to achieve the most out of life & others expect the free hand out route because "work" simply isn't in the vocabulary. Mr+, you make some good points and in reference to point 4 - Let's see if a roll over is agreed by Bondholders on Wednesday? I would seek to add the following Note to your 5 point post for consideration - Since stalemate has been reached between BRP/DCP & AMCU and since all employees are officially retrenched on April 3rd, it may be worthwhile considering a totally different route? The meeting I had with PL in Jo'burg Nov 2016 was very broad based and one of the topics namely that of contractors as possible option being considered to accelerate development of the lower block cave after successful restructuring? Part of that discussion centred around the current exceptionally low contractor rates prevailing mainly due to low PGM metal sector prices. (Platinum, Palladium & Gold) sectors previously relied heavily upon contactors & as the sector shrunk (higher cost producers mothballed shafts & reduced new expansion expenditure) due low pricing. It may well be worth considering that prevailing contractor rates are lower than AMCU unrealistic demands and perhaps these should/could be used during the restoration/remediation phase to bring the mine back into readiness for production? Mull it over & welcome everyone's thoughts? I had a long day and am starving so I'm going out to dinner now to celebrate good riddance of the AMCU & may look in later if I'm not too inebriated.... Lol ATB
Apology for seeming distant but I'm currently in the US attending studies & currently have my head buried in books for next 10 days. I can't add much at the moment except to say that if there was any material change in negotiations then we'd have been updated so one has to consider that negotiations continue. The scheduled quarterly Bondholders meeting I on 5th April 14:00 LT (13:00 UK) thus a late update that afternoon or next morning to advise if [they] agree to further standstill for the next quarter. Perhaps that'll contain some additional info around negotiations? Banksman, I must agree with the pathetic power play cabinet reshuffle in a desperate attempt to remain in power. A fact which South Africans understood better than those foreign governments that meddled in it's affairs to bring this idiot into power. Just another lesson in destructive foreign interference & not at all surprized that the UK, EU & US suddenly know no part of what they brought about? Can't handle our own affairs but willingly interfere in others... https://www.bloomberg.com/politics/articles/2017-03-30/zuma-fires-gordhan-over-feud-to-control-south-african-finances ATB
Posted on the other forum & worth a read. The age of the giant battery is almost upon us. Joe Ryan and Brian Eckhouse, Bloomberg 21 February 2017 "Lenders including Investec Plc, Mitsubishi UFJ Financial Group Inc. and Prudential Financial Inc. are looking to finance large-scale energy-storage projects from California to Germany, marking a coming-of-age moment for the fledgling industry". “We see an opportunity in the space,” Ralph Cho, Investec’s co-head of power for North America in New York, said in an interview. “We’re attempting to be a first mover.” https://www.moneyweb.co.za/news-fast-news/the-age-of-the-giant-battery-is-almost-upon-us/ ATB
@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
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
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
Currently stuck in the US due weather related flight delays and was rather expecting an update by now? Hopefully a agreement can be reached by the time I get out of here or it would seem that the AMCU self serving leaders have zero concern for jobs. ATB
Yes an agreement would be most encouraging. Shareholders & creditors have been very patient thus far & with creditors on board, perhaps the Practitioner can now turn up the pressure on AMCU? As I've said previously, they only speak for own affiliated members & not the entire labour force. MrP's recent court ruling article also tightens the screws on Union's to a certain extent. I'm not going to apologise for my direction of thinking & lack of tact perhaps this is the time to thin the ranks of sh*t stirrers. (Definition of "Tact" - It's the art of telling someone to p*ss off in such a manner that they actually look forward to it.) Together, shareholders/creditors will stump up the cash required but DCP needs a strong committed work force that are prepared to give their utmost in order to secure future prosperity of the mine, in so doing, everyone stand to gain. “There is no royal road to anything. One thing at a time, all things in succession. That which grows fast, withers as rapidly. That which grows slowly, endures.” – Josiah Gilbert Holland ATB
DiamondCorp (LON:DCP) Suspended – Update on restructuring discussions with the IDC and AMCU • DiamondCorp report today on progress in respect to their corporate restructuring and negotiations with the IDC ‘Industrial Development Corp. ’and the AMCU union, which is known in South Africa for its militant stance. • All parties appear to be willing to do their part with respect to rescuing the Lace Diamond Mine, though we note: “there can be no assurance that an appropriate agreement with the AMCU can be obtained in sufficient time,”. http://www.proactiveinvestors.co.uk/columns/sp-angel/27185/today-s-market-view-birimian-diamondcorp-plc-medusa-mining-limited-strategic-minerals-tethyan-resources-27185.html
Well we've encountered almost all the plagues so might as well include the French, LOL. Jaf, I think best guidance to follow would be as advised in update; i.e. restoration of the rig +-6weeks from recovery underground. Ground work repair & remediation to take place simultaneously during rig rebuild +-1 month. That is of course subject to any additional work that may have "snow balled" due to current agreement delays. DCP will surely update on the actual timeline required once AMCU are on board & plan is published & a new assessment is carried out. As a guess given that It's a tough call without much info on current levels of escalation incl. water levels that need to be pumped before rig recovery - So to be at the realistic at this stage & in the absence of direct info as to the status underground, probably around 8 weeks? Underground repair works as well as overdue care & maintenance could be completed well ahead of the rig return if there are no conveyor or production plant hick-ups. The latter equipment have a lot in common with woman, they don't like to be shut down & take plenty of time to warm up again...., Oops, sorry... ouch! Just kidding dear.
Good to see humour still alive einvestein! Yes the update was upbeat & perhaps now that IDC agreement is in place, the AMCU will get on board in near term so that remediation/repair can commence? Remember even if AMCU does not agree with terms, they only speak for affiliated members, not for other unions nor non-unionised labour. With the IDC, DCH, Laurelton and other creditors on board, a BRP restructuring plan put to vote is likely pass without AMCU if it comes to that. It is preferable to have the AMCU agree as DCP would not want any AMCU retaliatory strike actions or disruptions to detract from the restructuring process! Let's see if this week brings a common voice?
Gorilla in the room is "Carlsberg or was it Einvestein? LOL. http://www.diamonds.net/News/NewsItem.aspx?ArticleID=58616&ArticleTitle=DiamondCorp%2bAgrees%2bto%2bLoan%2bDeal