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Mountain Province Diamonds Inc T.MPVD

Alternate Symbol(s):  MPVDF

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

Post by Power33on Dec 13, 2022 5:50am
505 Views
Post# 35167726

Bonds sorted with NO dilution

Bonds sorted with NO dilution Mpvd will do over 200m cad adjusted ebitda this year in my opinion after reading the press release last night,yet it is valued at only 106m cad, which is totally nonsensical. The bonds have finally just  been extended at 240m usd for between 3 and 5 years. Mpvd had a series of unfortunate one off production issues this year, that resulted in a loss of approximately 700k carats, being their share of GK mine. If they could have sold these extra carats at 110usd, which was average selling price in first nine months, they would have paid 137m usd off the debt in 2022. Irrespective of these huge production issues due to Covid shutdown, crusher breaking down and a fatality on site, mpvd paid down 20pc of their debt in 2022, ie 60m usd, down to 240m usd at year end. I expect net current assets at year end to be approx 140m cad, bring q3 2022 figures, with the 240m bonds being reinstated as long term liabilities. This assumes mpvd can get production back to 2018, 2019, 2020 and 2021 levels next year.I think it is reasonable to expect total bonds outstanding to be 100m usd end of next year, a 140m usd reduction, which will be less than net current assets , if this is the same figure as end of q3 2022. With the  massive Hearne Kimberlite found this year, the prospects of Tuzo deep and incorporating the Kennady assets into an extended life of mine plan, I would not be surprised if there was over 4bn free cash flow to long suffering mpvd shareholders over the next 15 years. As long as diamond prices remain stable, one would think that this could  happen. There are also new exploration on the Kennady lands planned for next year. China has abandoned zero Covid and there is expected to be 1bn people in next 10 years going from poor to middle class in Asia region. What will this do to demand? Supply of rough diamonds is expected to stay static at best for the next 15 years. I see that the 218m shares in issue today are valued at .51cad. I see a clear road to these shares receiving dividends of over 18cad a share over next 15 years. I am asking myself is there a better long term pension income around than what mpvd could offer?. And I have ignored the fact that there could easily be another 50 years of diamonds to be mined up there if there is more future exploration success. There are tax loss sellers dampening price today. I am going to increase my holding now that bonds have finally been sorted with no equity dilution. When the shares go over 2 cad, institutional investors will be able to buy these shares. This and say relisting on Nasdaq or London stock exchange will propel the shares well in excess  of 7cad in next two years. Watch this space!
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