GREY:PGDIF - Post by User
Post by
thatlikelyon Sep 10, 2010 7:39pm
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Post# 17436195
small cap index
small cap index
that explains the move in the last hour. if so, i expect it to continue next week as mutual funds tracking the index have to include pgd in their portfolio.
once ch6 results hit the news , people will realize that pgd price should be at least 5.
ch6 diamond value = 2.4 billions ( area*depth*grade*price per carat = 150*250*6carrat/tone *100 usd/carat =2.2 billions)
costs = 0.5 billions(fixed)+ 40 usd/tone* 4mill ~0.7 billions)
profit = 2.2 -0.7 =1.5 bill , split profit with bhp , >>>> left with 0.75 billions. spread it over 6 years and discount it by 15% we get ~0.5 billions net present value.
so ch6 is worth 5 bucks per share for pgd.