RE:RE:RE:RE:DilutionThere is a lot more spec value in PGD do to the amount of kimberlites found and the number of economic kimberlites yet defined.
Having the Friedlands involved so closely also makes access to capital less risky than SWY.
SWY feasability study is for 17mil carats at 0.75cpt with the only valuation numbers I can find at $180 per carat with a range of $169-203. They have upside potential of between 24mil-50mil carats but need to be more defined.
Either way SWY is hardly a blow your hair back project and its gunna be a mine. I really like SWY and wish I had listened to my gut when it said buy in at 0.30 but all Canadian Diamond projects, maybe except KDI, are suffering from the poor Junior Mining environment we are currently in. Even when we they get good news there is a short rally followed by a dropping back down. There are signs the junior market is recovering but who knows how long that will take.
https://www.slideshare.net/SWYDiamonds/stornoway-renard-resource-update-july-23rd-2013-website-24617417
It seems the market is scared of investing with anybody who doesnt have a big name partner, like MPV and KDI by proxy.
I like the idea of PGD going it on their own with Eric and Robert at the helm once the bad juniors die out and we are left with only solid companies that the average joe can more easily see value in we will see a return to larger volumes. The DOW stocks are bound to come down sooner or later, metal prices are bound to rise, then we will see larger volumes on the TSX-V. How long will that take? No idea, its just my opinion.
Hopefully we get good valuations for the CH-6 diamonds, once those are released there should be a large spike in the share price and depending on the valuations and where the share price goes it may be a good time to exit and then buy back in once all of the excitement dies down as there will be a looooong road ahead to building a mine and we are still a ways off from the junior market recovery which should mean prices lulling back down on really low volumes after good news is absorbed.
Though if we get say $250 diamond valuations, that gives an inferred value to the rock in the ground at CH-6 $3.85 billion ( 5.7t x 2.7c x $250) and lets say we use the SWY cost per ton ( $56perton + 25% cuz its North = $70) so -$1billion to get us to a mine, and for every ton of rock we get $675 worth of carats -70 for the cost of mining it, roughly 10.4%
$3.85 - 10% = 3.465 - 1billion to build a mine = 2.465 billion and thats after operating costs at $70 per ton are factored in...if you feel that operating costs would be higher because of the location you may be right but even at 100$ per ton there would be over $2 billion dollars of profit in just the CH-6 to a depth of 325metres! Yeah and with mines drilling and estimating down to 650metres there is a HELL of a lot of upside potential in just that one kimberlite.
2.5billion x 0.20 = 500mil divide by # of shares = $3.45 by share.
If the values come in at $250 per carat or there abouts as there is so much upside. I would not even CONSIDER selling my shares for anything less than $3.45 per.
Its a boring Saturday in the Arctic ok? Sorry for the wall of text! Good luck to all.
PGD LONG (Ekim trademark)