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 ??

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.

>takahe

The problem is that I can understand it. It makes perfect sense to me. If you consider what I've been saying for the past few months, it does appear that the company took a chance and it failed. It appears that they deceived Endiama and Endiama is furious. Hence the demand that Cross and Badenhorst were removed.

As I see it now, NML could be a terminal patient. It all depends on Endiama and whether they are inclined to throw you a crumb. Personally I don't think you have a chance. Endiama have no reason to give you the free carry and every reason to withhold it. NML should not have been on the kimberlite and were supposed to be mining the alluvials. I suspect that Endiama knows a great deal more than this though. I suspect that Endiama have seen what was going on and are trying to distance themselves from it. If you know what I've been hinting at since November 2004, then you probably know why.

It would work out very well for Endiama if they waited till NML failed financially, because they can sell the license to some other company - after Catoca has set up the kimberlite mining operation. Some new licensee will accept that they are only after the alluvials and forget about the kimberlites. There are still some rich pickings there anyway.

If only the company had listened earlier in the year. But then, by the time that they made the announcement of the change in focus, it appears from the NML website that they had already been on the kimberlite for months, moving that 180k. So it was not as if you were being given fresh news, it very much appears that you were deceived about their true operations, as much as Endiama was.

The question is - WHAT ARE YOU GOING TO DO ABOUT IT?

You see, Endiama have done something. They stopped NML from working and took the kimberlites away from them for Catoca to work on.

What are you going to do to complain about the way you were deceived?

They told you, in November last year, that they would be mining the alluvials by February. 5,000 carats in two weeks Cross said. Instead, they switched to the kimberlite and led you and the others to believe that you would have extraction figures by the end of June.

Did they provide this data - NO

and why not? - because they were not on the alluvials, but on the kimberlite where they were not supposed to be.

You supported the change in focus, but would you have supported the change in focus if you knew that Endiama did not approve? They withheld that information from you. If you had known that the alluvial mining, the only likely source of revenue would be jeopardised by the company going out on a limb, would you have supported it? - NO. Of course not.

By upsetting Endiama, NML gambled with your money, your investment and failed. They have now possibly given NML the terminal blow. If NML are unable to start alluvial operations, they will be stuck in limbo. The Malaysian directors might decide to finance the company, but for how long? They must realise that if Endiama is waiting for 'hell to freeze over', then any money they invest into NML will quickly go down the tubes. How long before they pull the plug? Certainly no one else would be stupid enough IMO, to invest in NML.

What price those options now ehh?!

ASMITH2...fair enough..I have been in touch with him. He knows nothing about that.
What time frame did your contact have in mind for news to emerge?

Anom...actually, I didn't support their stance on the kimberlite. It seemed a bit high risk to me. You do know also that I complain quite freely about things to the company.
I think you are getting a bit carried away, in time. Without more information, no one knows what is actually happening.

Anom,

It was me who was fully behind the change in focus. Though obviously I had no idea that this was being done behind Endiama's back. I can understand NML's decision to a point but had I known at the time how this was being done then I would have sold up there and then and merely kept NML on my watchlist.

The point is stringy that you were deceived. The directors did not tell you that Endiama did not know about the change in focus or that NML were evicting Catoca from the kimberlite. Had you known this, you very probably would have sold.

This was price sensitive information that was withheld. IMO they thought that they could get away with it, because you would naturally assume that all the NML partners were involved in the switch. They were not and you were not told that. They didn't tell you the full story and as a result the share price has suffered. The directors are responsible for this, not Endiama. They should answer to the shareholders immediately.

Anomalous,

I don't believe they were ever awarded their alluvial mining licence by the Angolan government either!

Do some people STILL think this is positive?

What planet do they come from?

IMHO this is an absloute disaster of the first degree, and highights the fact we were correct to be concerned through all these months, and in fact, the reality is worse then even we thought possible.

For me, the writing was on the wall was after the disaterous shareholder meeting in November 2004.

I wasn't satisfied with their answers, and that justified my decision to sell at a modest loss. I am pleased I followed my instinct on this occasion.

I hope they manage to sell NML on as a cash shell , and the holders retrieve some of their losses, that seems the only way out now IMHO.


As someone else said, now is the time to focus on the company, and what they have said and done, and demand explanations! NML are responsible for this mess, nobody else.

A little bit of feedback for the troops...from Gary..cleared with him, as not being PSI or anything....

Shane Healy is going to Angola in a couple of weeks, as he does as part of his duties, to meet with Endiama. Senator David Johnson , the Chairman of the Board will be going with him, so they are obviously bringing out their big guns. Gary obviously cannot say what they will be talking about however he would expect discussions to centre on the kimberlite,the fact that NML has done everything asked of it and how NML can help bring the kimberlite to the production stage as soon as possible. He feels that, although a major is needed, NML can still play an important part. He also points out that, as stated in the RNS yesterday, in order to keep on the right side of Endiama NML has ceased mining, and will concentrate near term efforts on exploration. This is what Endiama wants for the moment. It is believed that Endiama think it will be easier to get a major involved if there is no-one else on the kimberlite or mining in the area.
*******************************************
This is as in the RNS, really, but perhaps easier to understand...

Andy..at least you don't have to worry about it!

takahe,

No, and thank goodness for that!

I hope you are still in FDI!

Andy..yes, great news today. I should add a bit if/when they drop back a wee bit!

Takahe,

I sincerely hope they don't "drop back a wee bit"!

But I do hope you manage to add at the current price, because they do seem to have some good longer term prospects IMHO.

The numbers in the RNS are quite phenomenal for a company with a market cap of 70 million IMO, and De Beers must have sanctioned them, and if anything, they may well turn out to be conservative, we shall see.

Takahe - I think Gary's claiming "doing everything they are asked" is a bit like a villain wanting the OBE for public service for ceasing to be bad because he's been arrested.

I have maintained faith in these against all temptation, but the desert is becoming awful barren just now and I would so like to turn that stone into bread, if only to break the boredom. Do you really have good reason to believe this company can salvage any better value for its shareholders than the current SP, and over how long? Or should I exit with my remaining value and by myself and a couple of friends a decent dinner on the proceeds?

sd

stockdog- I couldn't say what the prospects are. I'm just trying to get some information about what is on the agenda and report it.

takahe - your information and other efforts are greatly appreciated. Just looking for solace, although have to admit I've only ever had a very minor holding so won't be on the streets. In fact, it's quite an intriguing situation. If NML can salvage any position with Endiama/Alrosa in C9 then it might well be a better result for less risk than we previously faced.

Needless to say, no reply from Shane Healy yet. Somehow, I don't think I'll get one, but you never know. It would be better, in any event, if he replied publicly via a clearly worded RNS.

sd

stockdog,

Correct, it would!

But I wouldn't hold your breath!

stockdog...Quite agree. He is paranoid about answering emails. He should issue an RNS to clarify matters. Quite a number of people have told him the RNS was crap!
I think I told you that he was surprised that I thought it was negative!
If you can be bothered, ring him...