7936567 Canada Inc SWYDF

Metals & Mining Industrial Metals & Minerals

Stornoway Diamond Corp is a leading Canadian diamond exploration and producing company. Its principal business is the development of its flagship asset, the fully-owned Renard Mine, located in Quebec, Canada. The company intends to grow its business through the exploration and development of its mines. Stornoway also holds interests in a portfolio of exploration assets across Canada through owned properties and joint ventures. These properties and joint ventures include projects such as Adamantin, Qilalugaq and Pikoo.

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7936567 Canada Inc

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Post by Boomrangon Jan 04, 2018 9:58am

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Post# 27279365

interesting point of view... I agree.

Stornoway Diamond Corporation (TSX:SWY)

Stornoway Diamond Corporation engages in the mining, acquisition, and exploration of diamond properties in Canada. Started in 1986, and now led by CEO Matthew Manson, the company currently employs 492 people and with the market cap of CAD CA$551.27M, it falls under the small-cap group.

SWY’s stock is currently trading at -28% less than its true level of $0.92, at a price tag of $0.66, based on my discounted cash flow model. This discrepancy gives us a chance to invest in SWY at a discount. In terms of relative valuation, SWY’s PE ratio is currently around 11.3x against its its metals and mining peer level of 11.6x, implying that relative to its comparable set of companies, SWY’s shares can be purchased for a lower price. SWY also has a healthy balance sheet, as current assets can cover liabilities in the near term and over the long run.