Peregrine Diamonds Ltd. PGDIF

RE:RE:RE:RE:RE:RE:RE:Kaiser

[oiltar]

My take is the transfer to South21 already triggered first right to PGD,Now BHP breached the first rights clause and the cout can order the right to PGD.If the trigger has been pulled as it seems it has by the South 21 transfer then the court  rule in favor of PGD and likely going to  granted it to PGD.If BHP did not give a value to those rights at the time of the transfer then they may have valued it at zero.The court could uphold that zero valuation in it grant to PGD at no cost.

If PGD were to produce 1mt per year @ $236 ct then the cashflow per year would be @2.6cpt = $613 million X 2.5% = $15.3 million gross royalty.That cash would drop right to the EPS of PGD.

SO if PGD gets it for free or even has to pay a couple of million for it then PGD has 100% ownership,marketing rights and owns the royalty.PGD then could sell the royalty it paid nothing for to a streamer like Franco Nevada (Pierre Lassonde who loves diamonds) for say $25 million upfront and us that money to bulk sample the other 4 pipes in the mine focus area.

If PGD get those rights the look for a nice bump in the share price as that royalty could be worth over $250 million if PGD brought all the pipes into the planr and the in situ vaule of this deposit was $10 billion.That $250 million royalty figure is 4 times PGDs current market cap alone.

IF PGD gets it then it could go a long way to stream it to build the mine.If they get it we could see the share price double on that news never mind exploration news.That royalty right is like gold and is worth alot of money.It is also leverage if PGD were to get a takeover bid by Debeers who I fully expect to go hostile on PGD in the next 6 to 12 months.