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KENNADY DIAMONDS INC V.KDI

"Kennady Diamonds Inc. is a Canada-based diamond exploration company. It is engaged in the exploration, discovery, and development of diamond properties in Canada's Northwest Territories."


TSXV:KDI - Post by User

Bullboard Posts
Comment by cbriton Nov 02, 2013 11:08am
253 Views
Post# 21870838

RE:Is KDI price too frothy?

RE:Is KDI price too frothy?
No it's not unreal at all and here's why. MPV has gone through all the BS with DeBeers. They have proven that they have the diamonds count and value to build a profitable mine. Years ago Faraday and Hearne showed very similar micro diamond counts to 5034 and in the latest drill results, it has exceeded expectations.
Now here's the big difference between MPV and KDI.
KDI is 100% owned by it's shareholders and that is huge.
KDI has less than 22 million shares outstanding and that is a very low float.
Anyone who has followed MPV for many years can pretty well bet that KDI will have a mine and because there is no partner, progress will be swift. MPV has 49 million carats at $185/carat average so do the math here....9 billion or so and we all know that once mining starts, things can improve drastically.
So lets just say KDI has only 30% of this and lets say shares outstanding climbs to 40 million. Then lets take the in ground value at 20% of total valuation. The answer here is $13/share and this is what someone would do for a takeover value. Now this is being ultra conservative and IMO, there will be no takeover and we will see well over $10 per share soon. Diamet went to $60 per share then split 2 for 1. Think big.
Bullboard Posts