Corporate
The Opportunity
- The small to mid-tier diamond mining sector in Africa has been characterised by the prevalence of:
- Under performance
- Financial losses
- Mismanagement
- Excellent opportunities exist if a basic approach is followed
- Our approach follows the “4 P’s”:
Projects
Availability
- Numerous projects are available
- In areas that have previously been profitably mined / underexplored
Includes projects not exploited previously or inadequately exploited
Revised geological models provide new opportunities
Initial emphasis on known alluvial deposits:
- Quick cash flow
- Low Capex
- Quality gemstones
Kimberlite opportunities to follow
- Smooth cash flow
People
Extensive experience, integrity, skills at the following levels:
- Board of Directors
- Investment Committee
- Management
- Operational staff
- Associate consultants level
Experience is key
Strong leadership
Benefit of lessons learnt from past mistakes
Empowered, capacitated, well trained operational teams at project level
Flat management structures:
- Efficient decision making
- Hands-on management
Process
Back to basics on:
- Geology
- Processing
- Financial
- Governance – (ESG)
- Risk Management
Learn from past mistakes
New technology:
- Increased efficiencies and recoveries
- Enhanced profitability
- Marginal resources increasingly competitive
Technology correctly applied, maintained and monitored
First time accuracy in project design and implementation
Maintenance of operational discipline at project level
Price
Diamond marketing/sales
- Ability and experience to pursue and leverage top dollar prices
Projects
- Extensive databases and geological knowledge ensure key projects secured
- Competitive pricing of acquisitions
Crypto Currencies – Role?
Capital Shell Company (“CSC”)
“Vehicle for raising capital for acquisitions, and operations led by an experienced management team”
What is a listed Capital Shell Company (CSC)?
- A publicly traded shell which can be used to acquire or merge with other companies or assets
- Retained listing on an approved Stock Exchange- listing can be used to efficiently access capital markets
- No operations of its own at time of listing
- Will be led by experienced management team with prior M&A and/or operating experience
Public Private Company (PPC)
- Financiers and management can choose jurisdiction- small group of stakeholders
- Capital direct to account
- Controlled by shareholders and management
- Additional statements in Prelisting/Prospectus:
- Disclosure of acquisition criteria contractually agreed with financiers and management
- Disclosure of director remuneration and operating expenses for initial acquisition period contractually agreed between financiers and management
- Directors subscription of shares
- Board of directors will have sufficient and satisfactory experience
- Has the option of listing in a jurisdiction of choice
Benefits – CSC or Private
Benefits to Management
- Clean public shell (determined by due diligence)
- Listed shares are an acquisition currency
- Both Ppomote formation of capital
- CSC increased visibility and deal flow opportunities
- Allows the public to co-invest
- Broader base of investors
- Incorporates regulatory safeguards- CSC more than PPC
Advantages / Disadvantages to investors
- PPC – Capital available but ability to transact tedious
- CSC – Capital available and ability to transact efficiently according to exchange regulations
- PPC – acquisition criteria agreed with financiers
- CSC – can proceed as per Board Resolutions
- Potential to make significant gains
- PPC – risk of no investments being made
- CSC – Investment retained until acquisitions made
- Not permitted to obtain debt unless for acquisition
- Failure to make acquisitions results in residual capital being retained in the Company