GREY:PGDIF - Post by User
Comment by
Kidlapikon Dec 05, 2013 3:10pm
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Post# 21975840
RE:RE:Future Concerns
RE:RE:Future ConcernsI would wager that Victor is not hailed as the pinnacle of De Beers efficiency in house.
That aside they spent $1.2-billion to build it there, now how much do you suppose it will cost to build it on Baffin island? Keep in mind the cheapest way you are getting material up is by boat, these boats have shipping seasons, there are marshalling concerns, there are storage concerns once you get it there, there are flights for workers into and out of Iqaluit, there is lodging for workers once there...these are the concerns that keep me up at night.
There is good infastructure in Iqaluit and I believe the community and the Territory would support a diamond mine. The economics of creating said diamond mine on Baffin island are completely unique to any other diamond mine ever constructed in Canada and there is going to be a lot of unique costs associated with that.
DDC is expanding Ekati, looking into ways of expanding Diavik. De Beers has MPV and will probably look into KDI.
Why do you believe DDC will purchase PGD at this time when they are sinking money into Ekati and Diavik to expand mine life? Even stating it will do so by a further 10-20 years. I see nothing more than wishful thinking in that.
I believe 2014 will bring further share dilution and we will go it on our own. I am piling my money and waiting for a rights offering as both Eric and Robert are fond of them.
We will see a diamond mine on Baffin Island but it won't be anytime soon.