Buyouts...Majors vs Retail expectationsa diamond buyout from a while back. Really..what's sexier than diamonds? Certainly not zinc
Another set of studies for a Canadian diamond mine highlight the disconnect between valuations and the value put on a company by the market. In 2000, Winspear Diamonds Inc. delivered a prefeasibility study of its Snap Lake project, pegging the value at about $600-million after taxes based on an 8-per-cent discount rate, about $17.60 per share for Winspear's two-thirds interest in the project. Just a few months later, De Beers Canada had to be cajoled into offering $5 per share -- up from $4.25 per share -- for the company.