NML is due its interrim results now, last year it was the 28th of this month.

They are setting up a new site to explore/research/analyse and all the equipment to do this should be on site now, and drilling should start soon, all this extra news should be covered in the interims.

does anyone have any further positive views on this company ??

Well you are all going to be stunned by this post but I think now is the time to buy.

Here's my email for what it's worth. Did I ask the right questions? Let's see if we get any answers.



Dear Mr Healy

This morning's RNS seems to raise as many questions as it tried to give answers. It appears that the directors (Mr John Cross in particular) moved into the kimberlite area, in a (successful) attempt to drive off Alrosa, but without authorisation from Endiama - both regulator and 51% shareholder. It seems that John Cross and the senior Badenhorst brother have been fired for this aberrant behaviour. It seems that with a great deal of erstwhile absent diplomacy and good behaviour, NML may be allowed a minority share in a JV essentially between Endiama and Alrosa (most likely).

Have I got it right, or is there still something we are not being told? I think it's time for a totally clear statement from the directors to its shareholders about how they are running the company and what it's legitimate prospects are, together with a re-statement of who the directors currently are and what their, the Badenhorst's, and other reportable shareholdings currently are.

Now that the plant is no longer deployed on the kimberlite prospect, is it being re-deployed back on the alluvials where it should have been since commencing in April this year? If not, why not, or how long before it is operational again? Will this produce diamonds? Will this produce revenue? Will this produce net positive cashflow?

Sorry to bombard you with these questions, but it's time we were told everything in plain English, having watched the share price stagger from one rare RNS to another over the last 6 months, while not really knowing what you have been up to.

I assume, as you have been promoted to MD/CEO, albeit temporarily, you are trusted by Endiama to act in the best interests of the company. Could you please now extend that trust for the benefit of private shareholders as well in answering my questions with a further clarifying RNS.

Yours sincerely,

ASMITH...I think you are correct. I am not happy about this, as you can imagine...but I do strongly feel that NML would have got booted out now, if that was going to happen. Healy thinks the sp is ridicuously low and has just been heavily marked down by the MMs over the last few months, dropping it disproportionately to the selling. I said to him that there was some thought that there was a 'mystery seller' at work but he thought that was nonsense. He quoted me figures for several months (he has accurate figures, remember...)

STOCKDOG...good one! In fact....excellent...

Superb post stockdog would b interested at the response.
I hope that shareholders at least get the majority of their investments back imo they will.
Apologies for the silly posts in the past I dont want people to lose their money .

Very magnanimous of you ASMITH2...

BUYS 319K SELLS 156K but still down 26%...!!Ridiculous...The MM manipulation in these small companies is ludicrous..

Takahe,

Well I cannot see anything positive in this, in particular this part seems quite negative, IMHO.

---------------------
"With a return to exploration extensive costs reductions have been achieved. The substantial proportion of the equipment is to be maintained on standby until such times as alluvial mining is to recommence. Staff and manning levels have been reduced commensurately.

Piet Badenhorst has stood down as Mine Manager and Neels Badenhorst will take overall responsibilities for onsite operations."
---------------------

The "return to exploration" comment seems strange, as they said originally they had "temporarily" moved the "production" to the kimberlite, so I wonder why they are not returning to "production"?

And the 'production' equipment is to be "maintained on standby"?

So there isn't any production presumably, or they would have returned to it, as NML stated in their previous RNS!

This really looks poor,and I'm astonished that anyone can see this as positive.

Surely the holders can see the glaring anomolies in their various RNS statements?



Asmith2,

Nice comments, and I concur, I don't want to see anyone lose their money either, afterall we are all small private investors here trying to increase our personal security by investing in the market, which is not a level playing field at all.

I am just reporting what Healy said...they have been asked to get off the kimberlite and as part of the 'new relationship', Cross and Piet Badenhorst have been asked to leave..or so I am told....
I can't speculate on what will happen...only repeat what was said...

csmyth- 10 Oct'05 - 15:53 - 1953 of 1955


NML will NOT go bust. There is no debt and a number of people I know would write a cheque as long as it was priced right. The current price caps the stock at 2.5m pounds, which is less than a lot of shells I know. The company does have assets and isnt going under. If people want to sell that is their preogative and franly after the bad news I wouldnt blame them throwing the towel in, but the market is not rational on this stock at present and I wouldnt be surprised to see a bounce. I have seen far worse than NML come back from the dead (Thistle!!!)

takahe,

The perintnent words being "as long as it was priced right"

I do find it incredible that Shane sees that RNS as positive.

It makes we wonder what he would consider as negatrive?

I also find it incredible that they are not returning to alluvial "production", when they said they would, and nobody is even questioning it!

If they are mothballing the equipment, and laying off staff, and going back to exploration, it makes you wonder why they would ignore the 10000 carats per month they said they were going to produce.

I have been told it highly likely that NML are leaving Angola with a free carry dont know what the terms are in a jv with 2 of the major miners out there.New Millenium will be moving on as a cash shell with a free carry with Hudson and this Angola one.
Thats why Andy they are not bothering with the Alluvials they are moving on.Thats also why John Cross left as nml is departing the area and the mining scene,thats also why one of the Badenhorsts has left and the remaining Brotherr has stayed on to decommision the equipment.
NML will be left with a clean shell some cash no cash burn and 2 free carries in 2 very potential money making projects.
All this will be revealed when the jv is announced.
I have this from a good source and its all IMO And in their opinion so no accusations of psi please or the fsa or the authorities.Just trying to help with what is being said.

AS2 - thanks for the imo info - taken as expressed.

A free carry and no more management from this gang suits me fine, until I find an appropriate exit level. I suppose it's one way into a situation. ))

sd

ASMITH...well, that is interesting. He certainly didn't mention that to me when I was speaking to him this morning. Have you any evidence for your thoughts there..or are you just doing a wind -up? I can't see why they would get a free carry, if they leave...

I'd say that the MMs have changed tack and are now putting out a different story to encourage buyers.

The RNS today blew any chance of the JV story working. So now they are banking on the 'Free Carry', when there was no announcement of such in the RNS.

In my view, NML has the begging bowl out and is waiting for a few crumbs from the table. All for annoying Endiama. What could have possessed Cross and one of the Badenhorsts to take the decision to unilaterally start work on the kimberlites without informing Endiama first? I said that it was a bad decision at the time, when they did switch from the alluvials, but now it appears that they misled their partner as well.

It's very probable that Endiama were expecting to receive the revenue from the alluvials, as they had been led to believe and instead were told by Catoca that their partner was not operating as promised, but working on the kimberlite instead. They must have been furious to be deceived in this way.

I've said before that it was suspicious that they moved the 180k and started the alluvial operations in April. It maybe that Endiama was told the same and issued the alluvial mining license, only to find out a few months later that NML were doing nothing of the sort, but trespassing on the area that Catoca was exploring on behalf of Endiama. No wonder Endiama has taken away NML's right to switch back the alluvials. It appears that they have a major trust problem with the company.

In my opinion, you would be extremely lucky to see any free carry at all. It's far more likely that both Catoca and Endiama will wait a year or two, whilst they carry out drilling, bulk sampling and aerial surveys. If NML is still in existence by then, they might be given a morsel. They might be allowed to restart the alluvials on the Garimpo. They'll be lucky if they get that.

ASMITH2- any other comment on your 'rumour' of yesterday?

I am editing this because what I asked isn't PSI.... but some people may think it is...

I can see you've had a communication from Healy and from the looks of it, it was a price sensitive one at that. I wonder how the FSA will take it that Healy is up to his old tricks again? I rather think that now he's based in the UK, he'll be invited to appear at Canary Wharf.

Anom...hi there....It is not PSI, I can assure you..I have edited it out because it doesn't explain what I asked him....
David Horgan of Petrel sends people replies to emails all the time....there is nothing wrong with it, as long as it contains no PSI.
I was making the point to Healy, for his information that this is being said on BBs...rather not what is said in the RNS of yesterday.....
Who knows what they are doing? I wonder if they do!

Another poster on ADVFN has suggested that another possibility is that they could SUB-CONTRACT the mining of the alluvials and receive a lower profit. This would mean not walking away. The RNS refers to moth-balling the equipment until alluvial mining is recommenced following integration with the kimberlite mining/exploration to avoid overlap. When suitable, any sub-contractors could take over the equipment and running costs and effectively NML end up with a 'free carry' in the alluvials as well.
These are all possibilities...what do you think?

The poster also points out that Petra didn't even bother with alluvial mining after they achieved their kimberlite JV.

That's part of the problem, they don't appear to know what they are doing. Otherwise they wouldn't have risked upsetting Endiama by doing something they were not supposed to be doing.

Just think about it............they had to have directorial agreement for the change in focus. Cross could not go out on a limb with the decision to evict Catoca and squat on the kimberlite. Healy and the others had to agree beforehand. The other directors would have been expecting revenue from the alluvials. So the change in direction had to have been approved.

The one group that didn't approve it was Endiama. They were probably told that the alluvial operation would be underway very shortly and issued the license based on that fact. Catoca were probably quite happy for NML to move that overburden. They've had the benefit of hundreds of thousands of your money being wasted to make them rich. They were not about to complain to Endiama - until enough earth had been moved.

I find it quite amazing that the majority of shareholders have lamely accepted the news yesterday and that some of you have even described it as quite good. It is the most awful news they could deliver, short of losing the licenses, being prosecuted by the FSA/LSE or seeking voluntary liquidation. As it stands now, you have less than three weeks to the final results and a free-fall drop in the share price.

Even Mieke has now come to his senses and started questioning the state of play. After all this time, he's finally recognised that this investment is quite probably the worst yet. It's a pity that the majority of you did not recognise the situation when I shouted the warning in November last year. You are all meekly accepting csmyth's posts, when he was one of the people that attempted to deceive you last year.

The company have nothing good to report now, save the rumours of a free carry. I very much doubt that they will get this either. Endiama have no reason to give it and every reason to withhold it. NML said they would mine the alluvials, yet instead they took it upon themselves to trespass where they had no right. Endiama could quite rightly eject NML from Angola. The only reason they haven't is probably because they don't need to. They can leave NML to freeze, whilst Catoca gets on with the kimberlite work and wait for NML to fail due to its finances. Then they will sell the rights to another company, one that will carry through the work they promised.

They have no need to extract the Rio Lapi alluvials right now. Despite the report saying that there are millions of carats, because the kimberlites are far more valuable and Catoca will extract anything that is valuable far faster than NML ever could.

Chasing after a pipe dream has destroyed the chances of you and the other investors getting anything back. The share is now a fraction of the previous value and I suspect that in less than 3 weeks will be worth a great deal less. Still I suppose you can always use it as a tax deductable loss.

Such a pity that for some it's such a large loss. But then they wouldn't listen to the warnings. They were there for all to see and plenty saw them. I'm very glad that Gunnergonk managed to get out with a profit last year. At least he didn't suffer financially. He took the warning and acted on it, selling his shares at the first opportunity. I wonder how long you'll wait before doing the same. 1 year? 2 years? Endiama has plenty of time to wait. Catoca will be exploring for months. All you have is a vague rumour that they'll throw you a crumb. I doubt that they will do anything of the sort.

Just turn the lights off before you sell up!

Anom...It is not good, but possibly not over yet.
I can't even understand their RNS!

takahe - I cant say anymore but have you tried contacting Gary?
He may be able to help people have said hes always been very helpful in the past.