GREY:PGDIF - Post by User
Comment by
schocoron Jun 14, 2017 5:02pm
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Post# 26363562
RE:If Chidliak is such a great discovery
RE:If Chidliak is such a great discoveryThe truth of the matter is the world currently has lots of diamonds. Childiak is the NEXT mine. When the need for that arises, they are well positioned. A new port is being build in Iqualuit, federal road building projects are being discussed.these infrastructure improvements improve Childiak economics already and NPV of $1B. Robert is probably asking for too much; but I would not want him to ask too little. Pardon the pun but this is a gem of an explorco. You dont sell whiskey immediately after you make it you let it age to perfection to sell if for top dollar. The diamonds arent going anywhere the world just doesnt need them yet. Mines are depleting. That being said, the two largest producers (DeBeers and Alarosa) have project pipelines that extend out a few decades; furthermore Alarosa seems to be geographically concentrated in Russia. Rio Tinto and BHP two largish diamond producers from the past are either out of the game (BHP) or seeing their mines deplete quickly (Rio with Argyle and DIavik). Now Rio just did a LARGE exploration program at Diavik; if they do not find something there they will quickly have to make a decision on whether they want to stay in the diamond business (and expand/purchase/explore accordingly) or exit. My guess is they will exit but Peregrine would be an attractive target to them. Dominion HAS seen their market cap increase but this is a result of a strategic review to sell themselves to the highest bidder. They are not likely (or probably allowed) to BUY or fund another operation like Childiak while this review is on-going. Dominion (as a company) will not exist in 2 years time. Right now Dominion is polishing themselves up to appear attractive to the highest bidder and if you look at the grades $/carat of the pipes they are trying to push forward vis a vis Childiak you will see why Childiak is such an important resource high grade, unmined diamonds pipes do not currently exist anywhere other than the Childiak claim block.