Peregrine Diamonds Ltd. PGDIF

Anglo

[oiltar]

Pulled the plug on Chidilac,The bean counter at the top told Debeers not to go in.But now that same bean counter is admitting that Debeers is a very important source for its profits and that with projected diamond prices its only going to get better.But Debeers must face the fact that its South African mines are rapidly running out of ore and its two mines in Canada Snap and Victor are doing the same.So I conclude with Kaiser that we have not seen the last of Debeers at Chidilac and it just might be that Anglo cuts Debeers lose to find new diamond projects so it can keep the profits of Anglo rolling in.

We shareholders of PGD MUST remember that diamond mines are 1000 times more rare than gold mines.We must also keep in mind that world wide diamond production peaked at 175 milli cts 5 years ago and now has fallen to 135 million cts.

Those stats tell me that if Debeers wants to mine diamonds in Canada to keep the Anglo master smiling then we HAVE NOT seen the last of Debeers.

I speculated about the take over of Winspear  when no one though that would happen.But I thought Debeers needed Winspear even with its JV on GK.And then they bid.I called Debeers and told them the bid was too low and if they rasied it it would get shareholder support.They then said they would walk away in a public statement but in fact they raised the bid

Today I see that Debeers needs Chililac more so than I did with Winspear.I also think Eric is setting up the Newco because even he might think that Debeers could mont a hostile bid and does not want them to get the DO-27 for nothing as there is no credit in the share price at 20 cents.It is there for my view that PGD will be in play during 2015 maybe even before the next bulk results.Debeers did not want to leave Chidilac I was told.Now they have financial clout with Anglo to reverse that order.I bought a nice truck load of MPV at 50 cents on the idea that Debeers would come back to GK and they did.The combination of high value high grade at Chidilac is over twice the mertics of GK and Debeers will be back.I also think DDC needs Chililac

James

[Fivecarat]

James, this is an honest question: What do you believe would be fair price or should I say, what do you believe would be the sale price per share for Pgd to be sold? Right now, today. Thx

[oiltar]

Well another take over target I have written about got a bid today.Newstrike Capital.But the price was low due to the lawless part of mexico the Ana Paula deposit is located.So its not what I wanted but the market conditions and location has low balled the bid. As for PGD the ore quality is 12 times better than Ana Paulas gold deposit and there are no kidnappings or murders on Chidilac.But a low

[Fivecarat]

James, let me ask another way, more precise what I'm looking for: What do you think the likes of DDC would offer, not what Eric would accept?

[oiltar]

Can't answer that due to this crappy market.But I will add that the share price is now so low that if I were Debeers or DDC I would start the bidding process now taking advantage of investors who do not see Chidilac as one of the top diamond discoveries in Canada.

[mill44]

If anyone makes a move on PGD all what it will accomplish is alert the 3 big guys. It is a waste of money to try a hostile takover. The shareholder structure pretty much guarantees a discussion at the table if there is an offer to be made.

[jamesbay]

I have been down this road before....if someone owns 20% they have to declare a hostile teakover and offer a payout....which in the past has been around a 30% premium...at today's value that is 26 cents...the majority of the penny flippers would jump on that and be gone.....just my thoughts

[mill44]

By the time you get 20%, there are no more penny flippers left.

[cudjo]

to get to 20% and move the penny flippers, sp would be much higher than 26 cents.

[cudjo]

and, not enough shares for hostile, one of the 3 would have to sell.

[cudjo]

exactly mil, no one is going to give us 500 million for this play at this point in time, too much work to do, there can NEVER be a hostile take over, look at the share ownership structure. In the future, someone may/probably want this, not going to happen before we know more.  Anglo is bleeding cash, Anglo directed DeBeers to leave (according most here, and our pumper), we

[mill44]

Oiltar, if someone were to offer 500 million at this stage, wouldn't that mean that the play is worth close to 2 billion, at least? Why would the 3 big guys sell then? It is pretty close to a full picture, it might be worth for them to just see it through.

[oiltar]

Aber went from penny stock to $50. So in the long run mining this deposit for PGD shareholders is best.But who knows what goes on in Debeers board room?But if the CH-6 is the richest diamond ore on Earth,then I would be a fool to think I will own that mine.DCC or Debeers will not let me become their rival in the Canadian Diamond industry.

[xDeBeers]

Oiltar - CH-6 not the richest diamond ore on earth. Marange, Timber creek and Marsfontein all come to mind as higher dollar values per tonne. The last two where small mines, the first one is world class.

[mill44]

Don't be mean, don't burst his bubble.

[racer-x]

Don't really need the big company coming in, just the money, and money is cheap right now, I read they are spending $300 mil for the airport upgrade what's another $300 mil for a diamond mine, plugging in the values based on latest tonnage from the report this project is 100 times the stock price easy no matter how you look at it.

[mill44]

Money might be cheap, but it is also scarce in mining and oil.

[racer-x]

We spend $500 mil for a mine and then bring in $1b a year in diamonds simple as that, bottowed money is cheap but speculative risk capital is scarce.

[mill44]

The market thinks that there is a little more to that.

[racer-x]

Plug in some values brings in $1b a year for 20 years, Apple could buy this with one month's coffee club donation jar money use the diamonds with their new watch.

[mill44]

Why not? They wanted to go with sapphire, they could go with diamonds now. They charge enough for their stuff anyways.

[ekim]

If it wasn't for the Friedland's, Apple Corporation never would have existed. EKIM

[mill44]

Too bad Jobs is gone. Maybe he could have helped us out with some change from between the cushions at Cuppertino's.

[greex27]

Mill, do you think the SP is going to hold steady until April or do you see it pulling back at all? Thank you in advance

[mill44]

Depends what you mean steady. The best guess (taking everything into account) would be a trading range. If you do the math, between 17-20c or 18-21c there is a 15% move, enough for a range, no? Does not seem like much, but it is 15%. A move above 23c or below 16c would make me reevaluate this, but having the 52 week low (or better, a 5 year low) close by, it does not give you much room down. In my

[greex27]

Thanks Mill. I'd hang back if you thought we'd see $0.15 again. We've got warrants hanging out which I suspect the big 3 will exercise regardless of the SP which in turn should give the SP a boost and compel the rest of us to exercise. Does that sound reasonable? The warrants are likely in the way of anything material happening with PGD or PGX so what does the speculation of something

[mill44]

It is hard to be too bullish on PGD based on the charts. With breaking the 40c support, the management created some very unfavorable conditions. If you want to dream, you can imagine this going over the 50c mark again, but if you want to be realistic, you have to take it step by step. At least until some big news will gap it up over a bunch of big resistance points. For now, the 21c and the

[mill44]

About seeing 15c again, I would not count on it. At least not before April. If you really want to get filled, set your price higher.

[Gauwd]

Become quite apparent who one of the penny fippers here is, when a poster ignores all logic and reasonalbe arguement, posts wild assertions regarding things 'he has been told" and professes a background they can not defend, lost on discussions regarding financing despite claiing to be a financier, all the while making claims of 'too the moon', you have a penny flipper. 

[ekim]

I would think one scenario would be that 'pick a name' (DDC, De Beers, etc.) goes out and pubically announces a bid for the 100 million shares + 20 million warrants and partners with the big 3 to take this project to production. In that scenario DDC, De Beers would be the operating partner and the Big 3 would just be financially involved. @ this $500 million target, that would equate to

[jediknight]

So you are suggesting as a posibility DeBeers/Dominion would take a minority partner to develope the mine? Its a possibility not a probability.

[mill44]

With the spin-off, they would be the beneficiaries of a third of Chidliak alone, minus the 2% royalty. Not impossible, but what are the chances? Would not mak emore sense to just let them prove it up and go for the whole, even if it cost them way more? Don't forget that at one point Goodman will have to consult his shareholders if he wants to make a decision to hold on to the shares longer.

[mill44]

Gauwd, I know it's hard to listen to someone promoting (you see, I did not call it pumping :) ) a stock as the best one ever when you have heavy losses on it. All what you can think of is maybe he is right and you are not such an idiot after all. Then you lose even more. After a while you just get mad because you realize that they could be right at some point, the stock could jump 3-5x, just

[mill44]

Knowing what Eric would accept makes a huge difference. It will determine if there is an offer or not from any interested party. At this stage I don't think that there will be offers at 500 mill.