GREY:PGDIF - Post by User
Comment by
ekimon Jan 27, 2018 2:40pm
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Post# 27447499
RE:RE:50 Shades of Despondent
RE:RE:50 Shades of DespondentI don't think it is fair to compare the performance of SWY and MPVD to PGD.
Chidliak is very different then Renard and Gahcho Kue.
Gahcho Kue sat on the shelf for a long time and MPVD with 49% ownership of it still had to come up with full capital contribution by the time construction came to a greenlight. They chose to finance the whole lot with aggressive payback mechanisms. That system failed for them and they have ended up throwing in the towel for a new financing at 8%. A silent partner that will take a long time to pay dividends. The IRR in that project is not as advertised. The stones glow on dark light. The auction process for the big stones is just weird.
SWY is hitting lows. They have yet to uncover those big 100+ carats every 6 weeks as forecast. They should be getting those stones even with a bit of breakage along the outsides of the stones.
The financing was so complicated, no one anywhere has every given me a good description of the streaming agreements. Not stockhouse, not the news releases, not ppt presentations from SWY, not the analysts. It is all lawyered up talk that investors choose to look past the details.
Chidliak is different. It has a high IRR that is going to go up on the next PEA update. Robert knows this, Eric knows this and I know this. A defining factor for a new project is how quickly it can pay back capital and move onto dividends. A 100 million tonne gold deposit at 1 grams per tonne versus a 10 million tonne gold deposit at 10 grams per tonne. Some people get all sucked into the OMG 100 million tonnes...wow. The smart people know the 10 million tonne deposit is 1000x better then the 100 million tonne deposit.
LONG...PGD
EKIM