Peregrine Diamonds Ltd. PGDIF

Question for All

[chan_craig]

So just wondering, when do you guys expect the PEA update to be announced for pgd?

[cudjo]

by the end of June

[Kodiboy]

Just ask the "guy"....

[chan_craig]

Thanks. So how optimistic are we looking at a fully buyout or JV? With optimism I read through this board, pgd really looking like it's worth at least over a billion to 2 billion dollars which how come we infer to the PPS value?

[cudjo]

chan_craig, recommend you do some indepth searches, and take a look at ekims blog - theres a plug for you ekim, and from a basher too boot.  IMO, a JV or buyout is going to be required for this to move forward after a PEA, a FS will cost another 30 million dollars and the paper load here is a crush already, more will kill it for good.  Entry levels at this point will probably pay

[mill44]

PGD has big potential based on what they have in the ground, but to live up to it, you might have to wait until the project is in its finishing phase. For a buyout, the buyer wants to see a discount. The Friedlands won't be willing to give them that. They don't have to and they know what they have. If a buyer is willing to pay full price, good, they will sell it, but don't invest in

[ekim]

The NPV with the two shallow pits will be in the neighbourhood of CAD$500 million to CAD$1 billion. What isn't written is the value of the stuff below 260 metres depth at CH-6. That is the post-PEA sweetener and that is where you can get to CAD$1 billion to CAD$1.5 billion in NPV (after tax). I believe JDS has the ability to recommend stuff in a section in the PEA. I would hope they

[Kidlapik]

We may have an insitu value of $3billion+, in just what is going to come out in the PEA, but I would never put a buyout in that ballpark. Personally I think this PEA will show an NPV around $300-400million US and a 50% JV at around 200million-300million or between 0.52-0.75/share for 50% of the company. Or a full buyout in the $1/share range.

[ekim]

Wonder what they will Promote for NPV. US dollars or CAD dollars? The costs will all be in Canadian dollars and the revenue will all be in US dollars. I suspect Canadian dollars...but maybe even both. LONG...PGD EKIM

[Kodiboy]

Naive question...does a JV pretty much automatically relate to a much higher SP for Perigene? I guess we would get a bump in price at that time with such news, but will it result in a more permanent appreciation without further exploration justification in the area as a whole? I for one, based on my individual needs and position in the company, would welcome a distinct buyout. Anyone else wish to

[aea257]

I would like to see a complete buyout but around $1.50/sh or higher. Would/could this be reasonable?

[mill44]

A buyout of 1.5$/sh would be 500M today. Completely reasonable and the biggest obstacle I see because the Friedlands would not go for discounts. I don't think that they would give up all the upside for a lot less than that.

[ekim]

I agree $1.50 would probably be a good price for the Friedland's to cash out. A nice rally up to 70 or 80 cents and then a premium deal announced. A lot of dreaming happening on the board these past few days...myself included. LONG...PGD EKIM

[Kodiboy]

Yes, very wishful dreaming by all us "guys"

[Kidlapik]

$1.50/share is more like $600-million after all the management exercise their options.

[mill44]

That's why I am reluctant to believe anything about a buyout. We might be in a bit of a pickle because of the Friedlands. The buyers could look at us like a nerd at a cheerleader. Ask her out just so she can laugh at him? Even a 4x premium would be around 300M. If you go by the napkin calculations here, what's underground is worth at least 3x that much, not including the potential. Not

[Kodiboy]

"The buyers could look at us like a nerd at a cheerleader".  Huh? Not all cheerleaders are mean, yes, no? Poor little Millski, is that what happened to you? No potential buyers are going to take us seriously? or the Friedlands?  Sorry, not buying it... besides we we have the "guy" on our side, ya...

[ekim]

I wouldn't be surprised if everything and anything is on the table. JV or takeout from different parties might be on the same table at the same time. JV would leave the shareholder with significant leverage to the whole chidliak diamond district. All the untapped value. Takeover would eliminate that leverage and chances are investing in the acquirer..the leverage would be elsewhere and

[shneps]

All predictions seem to be either buyout, JV or more dilution toward FS. All considerations toward a JV partener are associated with partnering up with another diamond miner. One of the biggest growing sectors is royalty streaming. Companies in the gold sector such as Franco-Nevada, Silver Wheaton, Sandstrom and Royal Gold, to name a few. Maverick Metals is one of the new boys on the block and are

[MrBigger]

Certainly a possibility. Fact is they will need money one way or another. FF (First Mining) is aquiring companies left right and center for their mineral deposit bank. Wonder if they look at diamond properties as well??

[Hideaway]

Shneps,the idea of a funder using royalty streaming could have real potential, especially if the PEA meets or exceeds expectations.This method of financing has been utilized with success with precious metal miners in the past. The opportunities in the diamond sector might be even more appealing since the future projection for diamond demand and prices is very positive making the ROI much greater

[Kodiboy]

Is it not a little early in the process for a royalty stream agreement?

[shneps]

It's actually the most advantageous time as the company has limited choices for financing future development. The last financing obviously was without choice to get us to where we are today (PEA). Going forward requires more money which is totally expected in exploration. Next financing at $0.05 (as the "dog" always says) I don't believe will happen because it will kill

[Kodiboy]

You raise a good point and I'm no expert in the RS scenario but is it done on its own or usually within a package financing deal like Stornoway accomplished? Thx

[cudjo]

Chidlaik is no way even close to the stage that Stornoway is/was, after PEA is the Fstudy, that will cost 30 million, more drilling, deeper, etc  The only choice is to sell the idea and dream after the PEA, it has some meat, but is not a Feasability Study.  Remember the last financing ladies and gents, no one expected it, it sent Ollie into a funk, JK into a funk, if Rob and Eric have no

[Kodiboy]

I guess the question is, are companies willing to provide funds via a steaming deal to help a company explore further to prove up the resource or are they looking to help fund a company, like Stornoway, to build the actual mine to recoup their "loan" from the production process and in conjunction with other lenders looking to do the same?

[shneps]

I agree you have to remember the last financings Cuddles. The difference between then and now are, and will be,  N43-101 technical documents so that any rational investment institution can justify investing their dollars in this project. Institutions that purely speculate without technicals can get themselves in a shite load of trouble when they p-off their investors because of

[mill44]

I would bring up one more thing about the last financing, most if not all the money from that is still in the coffers. Kind of leaves you with no answers about the why, or at least not with one that is acceptable. One thing is for sure, it nipped one speculation rally in the bud and is hindering another one right now. No one can deny that it gave them lots of time to decide what to do, not to

[shneps]

Don't be surprised ultimately if the primary reason for the financing was to allow the Friedlands and board to accumulate the maximum number of shares available to them without exceeding 50%. The money left will sustain everything for the near term. My personnel predictions are that Ivanhoe Capital Corp. is your "white knight". That "white knight" rides a horse that owns 41

[mill44]

I would not be surprised at all. The market is cautious for a reason. I am just hoping that with the PEA they will see the threat of someone jumping in bigger than the benefit of getting more for cheaper. They still have the option of PP to accumulate, or even an outright sale to Robert if they want the whole pie for themselves, but let's hope nothing happens before the PEA.

[Kidlapik]

Besides the private placement and the incentive options granted to the board share-holders were given EVERY opportunity the board and Robert Friedland had to accumulate shares at a discount. In fact more, given that their was always a window to purchase shares cheaper than the offer up until this point. They stepped in when share-holders stepped out because somebody had to. I dont buy this

[ekim]

Not only did all shareholders have equal rights at 21 cents and again at 10 cents to fill their pockets on a equal basis...but the one area that the shareholders didn't have controlled was not abused and it easily could have. Remember when all those employees elected to expire all those millions and millions of options. They could have easily reissued them at 21 pennies at the time...but

[mill44]

Rights offerings are considered fair to all shareholders because one can sell their rights if they decide not to participate, thus getting compensated for the dilution. Pgd shareholders never had that opportunity. Whoever did not want to pony up more had to dump their position. The result was lower and lower prices in spite of a nice progress with the project. Forcing someone to put more money up

[ekim]

Point of a discount rights offerring...is that it is supposed to be at a discount. Not Friedland's fault the Canadian market mistakes rights pricing with market pricing. LONG...PGD EKIM

[shneps]

I, by no means feel it was any conspiracy plot. Yes somebody had to step in because shareholders weren't and there was nothing unusal from an exploration financing stand point. If you need money to continue, the financing has to come from somewhere. Management had always stated they would all be participating. I believe in this project and don't bash management (ever) for what they have

[Kodiboy]

Wow, is this the same board as a couple of weeks ago? I guess the increase in SP really does have a positive tone on people's comments, at least no one is all out fighting...I'm going to try to be a good "boy". Lots of  great points of discussion and I've noticed no one reacts to Oiltars posts anymore, so I guess I should do the same...good luck James! If you have some

[mill44]

I agree with you, it was not a conspiracy plot, it was just taking advantage of a situation. If you can take your time and have the money to continue investing in it, you look at it as an opportunity. If not, you feel betrayed. Of course the rights will always be at a discount, but only available to shareholders. That's what makes it fair. You decide to stay out of it, just sell your rights

[mill44]

If we see another rights offering, it's probably safe to say that the Friedlands crossed the line between explorer and miner. The chances of them taking it to the end increase big time then.