Peregrine Diamonds Ltd. PGDIF

CH-7 Diamond valation speculations

[Kidlapik]

Just for fun I have been playing around with the results and comparing to CH-6 posted valuations for figures.

4 Biggest Diamonds:

5.33 carat white/colourless octahedron no inclu.  $3,800/caratUS for $20,254
5.02 carat off-white octahedron minor inclu. $2,750/caratUS for $13,805
4.40 carat off-white macrl with minor inclu. $2,400/caratUS for $10,560
2.01 carat white/colourless octahedron $2,400/caratUS for $4,824

For prices I referred to actual appraised value of CH-6 diamonds with similarities see here, factored down 15% for comparable stones and factored down 30-40% for size catagories as there is a significantly higher % of grey/brown in CH-7: https://www.pdiam.com/s/PressReleases.asp?ReportID=627209&_Type=Press-Releases&_Title=Peregrine-Announces-CH-6-Independent-Diamond-Valuation-Results

Larger Diamond Catagories:

37 stones 1-2carats: 0 represented above; assumed 45% of parcel would be good shape/colour a case can be made for less/more. 16 okay stones at 1.5carat at $325/caratUS = $7,800; 21 stones bad at 1.5carats at $30/caratUS roughly $1000

9 stones 2-3carats: 1 stone listed above. 3 stones out of remaing 8 good. Assuming 2.5carats at $400/caratUS for $3,000. 5stones bad at 2.5carats at $50/caratUS roughly $625

7 stones 3 carats or larger: 3 stones represented above. Most likely other 4 are bad at 3carats at $250/caratUS for $3,000
total of roughly 105carats = $64,868

Remaining 617 carats at average $75/caratUS = $46,275

Total parcel value $111.143 for $155/caratUS actual. I imagine a modelled range around $125-175/caratUS

At an extraction cost of $100canadian-per-ton or $70us/ton it is still good mill feed and extends mine life significantly.

Now my question is, does the share price dip below 0.10 before the rights expire?

[mill44]

Issuing the rights did not do any favors to the investors. Is there anyone who still thinks that it was done just in case the results would be disappointing? In my opinion, if that was the reason, they would have let an anticipation rally start before issuing the rights. They could have given the same discount and still keep the price over 15c. A lot more people would have been willing to exercise

[ekim]

Nice post Kidlapik. Being a bit picky. Your list of 4 Biggest diamonds is not the 'biggest' diamonds...just a selection of the larger stones that PGD feels will be the biggest value contributors....or literally 'diamonds of special note' The 2.01 was obvously included because it had no inclusions. The top stones at ch-6 all had minor inclusions or inclusions. CH-7 now has 2

[Kodiboy]

Mike it is coceivable that the "better" diamonds collected will in some ways cancel out the "poorer" ones, but isn't that almost always the case?  Does not the valuation success or failure depend on the valuation of the "better" diamonds? If they had found one, only one 20c flawless stone, wouldn't we be purposing, "fluke"? Remember way back

[ekim]

Valuation is always top weighted to the top few high quality stones. Kind of like the 80/20 rule. 80% of the value will be contained in 20% of the stones. Gahcho is riding the wave of a single stone. If they hadn't found that single stone...it might still be on the shelf. But you are right..if the population curve doesn't support a big stone in a small sample...then a fluke it is. No

[Kidlapik]

I think you mean crushed ice. Couldn't resist.