Peregrine Diamonds Ltd. PGDIF

Like Diamonds - PGD is a story of survival and growth

[charni]

POSITIVE FACTORS IN THIS STORY

The Friedland brothers own approximately 45% of the shares. Serious vested interest in the project - skin in the game as they say - IMPORTANT. They participated in all Rights offerings to the maximum and more. They believe in the story with vision, work, and money. This is a legacy for Eric to complete.

Eric and his team generally know pretty well what they are doing in the mining sector - seasoned mining exploration individuals - they kept the company afloat in the worst resource bear market in history (which is still on-going). In fact, Eric has doggedly advanced the project with his management team step by step. Remember in better times Eric's Peregrine Metals was taken out at $3.28 USD.

A very robust growth in the asset base with this new PEA news

CH-6 and CH-7 open at depth still,  which should add more goodies to the gravy train

Multiple pipes delineated - yet to be explored for additional resource growth - "field of dreams" which is why us speculators risk our money on.

Rights offerings help a company survive, especially in poor market conditions when outside financing becomes difficult. Had to be done. Proper management decision. 


The main negative is the very poor resource market sentiment  -  in speculation, they say buy when there is "blood in the streets"  - especially pertinent when management is sound and the robustness of the project keeps getting better and better but market sentiment blinds seeing the opportunity.

[cudjo]

charni, I think your forgetting the collosal error management made with the no free look that forced DeBeers out and what followed were 3 share price destroying rights offerings.  Ask yourself a simple question, had they been willing partners before they forced DeBeers hands, where would this be now with a willing and able partner.  Certainly, with what is known now, and it is positive

[mill44]

Cudjo, your asumption is that what happened was a miistake. You don't know that for sure. It could have been the plan from the moment Robert joined Eric. I have been talking about that since DeBeers walked away. That is the biggest risk in this play. Robert could be the major Eric was looking for in 2012. In that scenario there are no minor shareholders. Everyone invested in PGD will be

[mill44]

And that is my problem, and most likely the market's problem as well, with a rights offering from PGD. Each new one makes my idea more valid.

[Kidlapik]

Once again I disagree with your assessment Cudjo. You say it was a "colossal" mistake; that deal would have sold 50.1% of the company for about $60million! Would it have resulted in a higher share price than today? Definitely but is it fair value for 50.1% of the company today? No chance. Once again as an American investor I understand your bias when saying it was a colossal mistake but

[cudjo]

agree to disagree kidlapik, thanks, if your in this for your 401K and your old age, your position may make sense, if the other pipes prove economic and they find a partner, (ask yourself what will it cost now), if no partner, ask what it will cost in dilution to move forward. You will only see ROI after they start making money, 7 -10 years before a mine, another 2-3 years before a profit, if they

[schocor]

Cudjo Please explain how exercising rights - inserting money into the project to keep our share % ownership the same - results in dilution?

[mill44]

Schocor, in 2014 Ekim did the math with the second rights offering. According to that PGD should have been trading at 30some cents after the rights were excercised. It traded down to 18c. That is dilution. Since then about 30M (almost half of the market value of the company) has been invested in the project, yet we are at the same market cap. And before we go down the same path again with the

[schocor]

There is no dilution if you fully subscribed to the rights. The money that we have invested since 2014 has not increased the market cap of the company; THESE are factually true statements. Dilution - by definition - is when your % ownership decreases because of a share issue. This does not apply here if you participated in the rights offerings (your interest is the same). The share price has

[griefman]

In my crazy mind, dilution is when you add more to something, like adding a cup of water to a cup of milk, you are diluting the milk even though you have 2 cups of fluid. Thus, if you have a million shares of XYZ company and it’s SP is a buck, and you add another million shares at 50 cents, you end up with 2 million shares, but now the SP is 75 cents...is that not dilution? What am I missing?

[schocor]

dilution. . [dlooSHn, dilooSH()n] NOUN . the action of making a liquid more dilute. the action of making something weaker in force, content, or value. "he is resisting any dilution of dogma" a liquid that has been diluted. the degree to which a solution has been diluted. "the antibody was applied at a dilution of 1:50" synonyms: extract concentrate concentration quintessence

[mill44]

"a reduction in the value of a shareholding due to the issue of additional shares in a company without an increase in assets." Did the rights offerings cause dilution then?

[schocor]

No because the increase is assets was the cash we had to put into the company to get the shares.

[griefman]

Holy frick Batman, what, huh?

[mill44]

So using strictly your definition, at the end of the 21c rights, did we have dilution? Aug 12, 2014 - close at 41c, 143.8M shares, worth 59M, Oct 8 - 19c, 215.8M shares worth 41M. They raised 15.1M issued 72M shares, total 215,764,791. The total after closing would be 56.1M, a 3M drop at the closing of the rights offering.

[griefman]

Mill, who are you asking about their definition?  Thx

[mill44]

Kodiboy. adding any water to milk would result in diluton, no matter what. Try making lemonade instead. You get some friends over, make some lemonade. If more show up than you expected, you add more water to your lemonade to have enough. Did you dilute it? Not if you added more sugar and lemon to it as well.

[mill44]

Again, when looking at the effect of a rights offering, you have to look at all the shareholders and not just part of them to see if it is dilutive or fair. A rights offering is not dilutive if you can sell your rights to compensate for the drop in % of ownership if you cannot or decide not to exercise. That was not the case with PGD. It was dilutive for all non-US shareholders and anyone who did

[schocor]

Mill having participated in the rights offerings; I own the same amount of PGD as I did before the offering? Correct or false? This answer explains whether existing shareholders who participated int he rights offerings have been "diluted" or not.

[mill44]

Is today's PGD the same company that was before the rights offering? 50M raised through rights offering should be reflected in the assets in order to say that the rights have not been dilutive. If you say that the value of Chidliak went up 10 times, I will agree with you. But did the value of PGD?

[griefman]

What is 'Dilution' Dilution is a reduction in the ownership percentage of a share of stock caused by the issuance of new shares. Dilution can also occur when holders of stock options, such as company employees, or holders of other optionable securities exercise their options. When the number of shares outstanding increases, each existing stockholder owns a smaller, or

[griefman]

BREAKING DOWN 'Dilution' Dilution is a case where a company is divided into smaller pieces, meaning that current investors have a smaller portion of the overall pie. While it primarily affects company ownership, dilution also reduces the value of existing shares by reducing the stock's earnings per share. For this reason, many public companies calculate both earnings per share and

[ekim]

you guys all have to stop talking about rights offering. When someone like Des Kilalea makes the wrong assumption that the share price should always head to a discounted strike price in a rights offering....what hope do we have here? None. “We expect the share price to trade down towards the ex-rights price, but our view is that once the refunding is completed price appreciation is likely,” said

[mill44]

Ekim, Oct 8, 2014, closing price was 23c. Jan 28, 2016, closing 11c. Aug 17, 2017, closing 13c. Those closing prices are pretty close to the rights. That is the right assumption, at least in PGD's case.

[cudjo]

simple question, simple answer, with what we have in value in the ground, yes it has increased,, what is holding the share price back, pumpers NEVER answer this, why?  Pretty simple anwser, and it is not the market.  Throw definitions out all you want, tell everyone it is the market conditions, it is the 200+ million dime shares issued for the rights, nothing more, nothing less.  If

[Kidlapik]

So what your saying is...if its another rights offering its bad but if its a sale/JV/deal its good! Cool glad we can go over the options again and again with no additional info available other than pure speculation on both sides on what the outcome could be.

[cudjo]

true, all speculation until we know what we know, last question kidlapik, and I will stop beating the dead horse, what is holding the share price back with all the great news we have had?

[Kidlapik]

Fear of another rights offering / fear of managements agenda being to privatize the company

[Kidlapik]

I also think fear of Nunavut in general and I have always believed if this same project was in the same geographical location as KDI our current share price would be vastly different.

[cudjo]

fair enough, not sure if I agree with you on the far north, not like it is 1950.  Think we will know soon enough, not sure if I am going to hold out for a partner, or sell and short again, have to consult with the bones.  Thanks for your input, good luck.

[griefman]

Cudj, maybe the answer is soooo simple, that large retail holders of this stock are embarrassed to be so deep down the sinkhole, they refuse to accept the obvious, because it’s so obvious it shouldn’t even require additional discussion.  Ya don’t need to beat it over the head over and over.  

[cudjo]

thanks kodi, looks like roby keep selling into the bid  ;)  ttyl, good luck.

[mill44]

Five years and considerable amount of money invested in this and anyone who stumbles into PGD now has the same chance of making money as you. 

[schocor]

partially true I suppose - truth of the matter is we have all made a pretty good % return on the last rights offering we participated in. The smart money into a mining project is always the last money into a mining project - but is PGD a good investment NOW is my question. I think the answer is YES.

[charni]

From my understanding of a long time ago now, DeBeers parent, Anglo pulled back on new expenditures in the mining downturn which was severe as you know. Remember Anglo also walked away from Northern Dynasty after spending close to $580 million USD on that project back in those long forgotten days. Us little guys shrink back in bad times with little monies and the big boys do the same with big

[cudjo]

Suggest you check your dates charni, and the terms and timing of the no free look, the company made a mistake IMO, or it was designed, as mil suggested, then Robert came in, if Robert had not come in, titanic. Even with Roberts help, the sp has been titanic, if your in now, you may be okay, but the long longs are in tough. Good luck.

[schocor]

Cudjo - Chani's dates regarding DeBeers/Anglo match up pretty good to my recollection. The LONGS, have made good money off the last two financing agreements considering where the share price is at today. Once again, your perspective is YOURS and not universal.

[mill44]

Charni, the DeBeers perspective is right, in my opinion, too. They were going through restructuring at that time. But that's the last thing that was acceptable when it came to the minority shareholders. The rights offerings helped the company survive. The pricing got us where we are, not the rights offering. And when a major stepped back because of the market conditions, other companies issued