GREY:SWYDF - Post by User
Comment by
MrAndersonon Apr 04, 2011 12:05pm
320 Views
Post# 18381791
RE: RE: Renard Diamond Project Now 100% Owned by S
RE: RE: Renard Diamond Project Now 100% Owned by SIf you read the study you should find that 885 million is the net present value of the profit they expect to make. So take the value they would sell the diamonds at over the next 25 years, reduce that by ALL the costs and reduce that profit figure by some expected % rate to make up for the fact that you will not get that profit all today (you get it over the next 25 years). That computed figure (should be in the report) should be the worth and should be 885 if their figure is right here.
Divide that by the number of shares out and you get a fair market share price. Higher then todays share price. Its higher because there is risk. There are lots of reasons that could interfere with building the mine so the share price is discounted. But there is also lots of upside potential, the price of diamonds could and likely will go up, they will likely find more and there could be some bigger diamonds that they find and those would return a higher price per carat, also lots of grass roots stuff.
everyone will have a different opinion as to how much or big those risks and upside possibilities are worth, so the share price will fluctuate lots between now and mine completion and the recovery of the first years stones so that we can determine what is really down there.