The independent experts will help the company with an independent valuation based on which it will prepare `Ashton's target statement' which is likely to be released by mid-September.

It was on July 31, De Beers announced an open offer for `all issued shares' in Ashton Mining in a cash transaction valued at approximately A$522.1 million.

Referring to the De Beers' takeover bid Ashton Mining's chairman Justin Gardener has advised Ashton's shareholders not to take any action in respect of their share holding in the company until they receive Ashton's Target Statement. Gardener is of the view that De Beers' preliminary statement undervalues Ashton and considers it unlikely that De Beers might have taken into consideration the outcome of the recent study at Argyle.

Meanwhile, Ashton Mining has reported 124 per cent jump in its net profit for the period to A$22.6 million from A$10.1 million for the same period of the earlier year. It has jacked up the half-yearly interim dividend to 5.0 cents per share from 1.5 per cent paid for the earlier corresponding period.

Ashton management has clearly predicted that the profit for the full current year will be more than double than that in 1999. It has also indicated still further improvements in 2001 and 2002. Gardener is said to have attributed the company's impressive performance to strong sales from the company's share in Argyle mine and higher prices for diamonds produced by Argyle. The result also highlights, the growing significance to the company of its other developments, particularly in the Northern Territory of Australia which made its first profit contribution in the latest period.

Argyle has prime position in its segment of the diamond market which is widely forecast to continue to show significant growth. The strength of Ashton's position in this market is underlined by De Beers' bid for Ashton, particularly in view of its revitalised outlook.

According to the management the options for extending the Argyle mine-life include a further cut back in the open pit beyond the two currently planned and an underground development. The order of magnitude study for the underground envisages a potential mine-life until at least 2018. Below the proposed underground mine the resource continues at depth. A recommendation to commence feasibility study on options to extend mine-life will be proposed to joint venture later this year. The chairman has emphasised that Ashton's ability to deliver sustainable improvements in profits and dividends in the future is enhanced by this strengthening in the outlook for Argyle and the potential for its other projects.

Based on current diamond prices and exchange rates, Ashton expects full year profits to more than double 1999's results.