Updated Gross Project Values
Previous Quick Calc had some inaccuracies.
So reposted using various public sources.
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Duas Barras (100% Interest)
Commercial production commenced September 2007
• 2008 production of 90,000 carats
• Indicated and inferred resource of 432,000 carats
• Diamond value of US$172 per carat
432,000 carats x $172 = $74.3 million
or factoring in from the latest:"Vaaldiam thinks its diamonds will fetch about $200 (U.S.) per carat this year,as it increased its minimum cut-off in late July and the smallerstones recovered previously would lower the average value of its firstsales."
so, 432,000 carats x $200 =
$86.4 million Gross Project Value
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Chapada Mine (100%Interest)
• Commercial scale production commenced March 2007
• Annual production of 30,000 carats of diamonds per year
• Indicated and inferred resource of 270,000 carats
• Diamond value of US$400 per carat
• Resources contained within 15 sq km area.
• Additional 270 sq km’s of mineral right concessionsprovides significant exploration upside
270,000 carats x $400 =
$108 million Gross Project Value
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Brauna (100% Interest)
• Advanced kimberlite project in final stages offeasibility study
• 22 kimberlite pipes – 4 diamondiferous and 18 still to betested.
• Estimated average carat value of US$125 per carat (real valuation still to come)
Based on today's news:
974,858 carats x $125 =
$121.8 million Gross Project Value
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the 3 most advanced projects based on estimates to date (with significant expansion and blueksy potential)
$86 million + 108 million + 121 million = $315 million combined
current marketcap is
shares outstanding and options (excluding warrants - not near to being in the money)
is 218,500,000 approx.
x share price closed today @ 43 cents =
$93.9 million
It is not correct to compare the project values with the market cap for all kinds of obvious reasons.
But it does give a very ROUGH ROUGH idea of relative factoring.
For example, Production costs are still being determined - optimized. From the Duas Barras update:
"Vaaldiam's costs are modest. The company built the mine for less than$4-million (U.S.) and the operating costs are just a fraction of the gross gravel value. Duas Barras began production with operating costs of about $53(U.S.) per carat, net of gold sales. That suggests much of the diamondrevenue will be available to support Vaaldiam's efforts elsewhere.Thehigher processing rates would help Vaaldiam lower operatingcosts further. As well, diamond mines typically optimize theiroperations during the first year or two of production."
So realities are:
Vaaldiam is delivering regular significant growth.
Share price reflects general apathy in many niches of the market - diamonds are also not in favour.
A major discovery would help in the short-term, or institutional investors realizing VAA's growth in the past year and getting on board.
Long-term this stock appears to have the ability to deliver regular significant growth and one day diamonds will be in vogue again.
If anyone sees any numbers that are incorrect or need updating, please post.Thank you.
Good Luck.
MAK