If CQT can manage a large diamond resource they may be in talks with De Beers soon, what do you think Darth? Check out this article below in:
Australasian Investment Review
19th Jan 2005
De Beers Looking For Partners In Oz
January 19 2005 - Australasian Investment Review – (AIR)
The world’s largest diamond miner, De Beers Group, has decided not to spend any more funds on direct exploration in Australia with the company’s exploration manager in Australia confiding to Resource Investor De Beers’ future exploration in Oz will go through partners instead from now on.
The switch in strategy has an interesting angle due to De Beers’ accumulated tax losses over the past 40 years which are thought to be no less than "massive". Rumours that De Beers had been looking at a deal with its current partner in the Ellendale diamond project in the West Kimberleys, Kimberley Diamond Co (KIM), last year may have been a precursor to what investors can possibly expect over the coming months from the local rumour mill.
After all, it is only logical to assume that De Beers will try to find compensation for its accrued tax credits, despite it no longer walking the exploration path on its own. Key in the whole strategy will be whether the ATO accepts any transfer of the losses into another corporate vehicle.
Copyright Australasian Investment Review. AIR publishes a weekly magazine.
CQT Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held