GREY:PGDIF - Post by User
Comment by
beachbum1on Nov 29, 2011 5:43pm
432 Views
Post# 19276429
RE: Bad timing
RE: Bad timingI think if you read between the lines there could be a few things going on here:
1) we all knew that Ekati is winding down ... unless they found anything when they drilled deep ... and that isn't showing much promise. That being the case BHP is not likely to continue to keep their diamond operations in full swing absent a viable diamond mine;
2) I think the jumped into this thinking it was the next Ekati, as did many of us. Now that is looking less likely they are probably content to look at viable ways of downsizing their position; and,
3) probably most importantly, and we are sure to find this out soon ... they may not want to spend any more 51 cent dollars trying to find something that is showing less and less potential.
All of this being the case, i don't think BHP would have gone to the trouble to make this announcement if they didn't think they could get something for these projects. A sale could create value for us as well as it is likely that anyone looking to take over an interest in this property, is likely going to want to take PGD's interest as well. If they don't we will get a true valuation of the project in its current state.
The one puzzling thing was how the release came out. It almost caught PGD off guard as their reply was curiously short, and stated that more informaiton would be released as it became available. This only a short time after Friedland is on record as saying BHP is a great partner, has been very supportive ... blah blah blah. This makes me wonder whether this thing is starting to pound up against a wall, and really makes me think once again that its amateur hour at PGD.
On balance i agree with you EKIM, we are no worse off than we were this morning. I think the potential that this project is sold and we are taken out must be at least equal to the potential that BHP just walks away.
Next question would be ... who are the possible suitors? DeBeers just did some sort of restructure ... i'm sure there are others ... but all of the big companies are now quite big and at this phase of development may not be interested in this project. We don't have the resources to bring it to completion, so that could be a problem.