Peregrine Diamonds Ltd. PGDIF

RE:RE:GK Diamond Photos on SI

[justanormalguy]

Thanks Ekim.  I noticed the note reference to the modeled price in the MP presentation.

"Modeled assumes value increases only up to 6 carats"

I don't recall what the upper limit was placed on the modeled price for CH6, but this is another upside that I hadn't considered and may be partially reflected in the quote from Feb 2014 by WWW and another factor to take into consideration in PGD conservative NPV for 6/7.  $1 dollar increase in the diamond price essentially goes straight to bottom line before taxes.

"Based on our analysis of the parcel, WWW believes that if CH-6 were in production in the current diamond market, it is highly unlikely that the average price would be lower than the minimum modelled price. It is also important to understand that the high modelled price does not represent a maximum price and that the ultimate average diamond price in a mine production scenario could be higher than US$236 per carat. Given the number of large stones in this parcel, and their relatively high value, even the high modelled price may be considered conservative.”