Mountain Province Diamonds Inc T.MPVD

Alternate Symbol(s): MPVDF

Metals & Mining Industrial Metals & Minerals

Mountain Province Diamonds Inc. is a Canada-based diamond company. The Company’s primary asset is its 49% interest in the Gahcho Kue Mine, a Joint Venture with De Beers Canada. The Gahcho Kue Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company’s Kennady North Project includes approximately 113,000 hectares of claims and leases surrounding the Gahcho Kue Mine that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) at 8.50 million tons (Mt) at a grade of 1.60 carats/ton and a value of US$63/carat. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/ton and a value of US$140/ct. Faraday 1-3 is estimated to contain 1.90Mct to 1.87Mt at a grade of 1.04 carats/ton and a value of US$75/carat.

TSX:MPVD - Post by User

Mountain Province Diamonds Inc

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Comment by tinytoton Oct 21, 2018 12:09pm

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Post# 28843289

RE:RE:RE:RE:RE:RE:RE:A DUH moment for Tinytot

Mac, I admit that I have no idea how the companies actually account for the transaction. Maybe they do it as you describe.

I am not an accountant by training, but from my business experience, I would have to say that a winning $10 bid would have been treated as a $10 cost, as simple as that. Everything else would follow.

Perhaps the companies account for it as you describe - but until they tell us that, I'll doubt it, and believe it is accounted for as I describe.

tinytot wrote: while I do not agree with your description below, I'll grant you that for all practical purposes we are saying the same thing

Macloud1 wrote: I think you are wrong Tiny If the winning bid is 10 dollars and MPVD won the bid then they have a cost of 5.10 and no sale at the moment. Debeers on the other hand have a sale of 5.10 and no additional cost .

If Debeers won the bid then they have a cost of 4.90 and no sale at the moment while MPVD in this case has a sale of 4.90 and no additional cost.

The winner has a cost at the onset and only knows if he is losing, breaking even or making a profit after the second sale. The loser on the other hand has a profit immediately after the first sale.