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Mountain Province Diamonds Inc T.MPVD

Alternate Symbol(s):  MPVDF

Mountain Province Diamonds Inc. is a Canada-based diamond company. The Company’s primary asset is its 49% interest in the Gahcho Kue Mine, a Joint Venture with De Beers Canada. The Gahcho Kue Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company’s Kennady North Project includes approximately 113,000 hectares of claims and leases surrounding the Gahcho Kue Mine that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) at 8.50 million tons (Mt) at a grade of 1.60 carats/ton and a value of US$63/carat. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/ton and a value of US$140/ct. Faraday 1-3 is estimated to contain 1.90Mct to 1.87Mt at a grade of 1.04 carats/ton and a value of US$75/carat.


TSX:MPVD - Post by User

Comment by norbu1on Mar 16, 2014 11:10am
173 Views
Post# 22328930

RE:Quebec Elections

RE:Quebec ElectionsDenv, I don't see the outcome of the Quebec election having a significant impact on MPV, regardless of the election outcome. MPV corporate headquarters are in Toronto, Ontario. The actual mine is in NWT. so again, there will not be a direct impact resulting from Que. election results. Regarding the possible impact on the Canadian economy as a whole, I don't think Que. election will do much. Of more influence are the decline of China's GDP and uncertainty in Ukraine/Crimean region. MPV is one of my most interesting and possibly profitable investments. There are many positives to this story and a bit of mystery as well. MPV is a "best in class" diamond mine/company. It is the largest new diamond mine/discovery in the world, this is a fact. It is located in a fairly stable country and it has the branding/marketing value of being "bloodless". This is a big marketing point with Europeans and the Hollywood jet set. It is pretty much de-risked as all of the licensing and First Nations agreements are now in place (correct me if I am wrong). There is also ongoing exploration and development which will add carats and value to this story. Management seems okay and to have a reasonable level of integrity (hey, I am over 50 and seen a few things in my time, so if I seem a little cynical, aren't you too?). The question I would ask is how will the geo-political events affect MPV? I think if it dips, this represents a buying opportunity and not a sale of the stock. The diamonds are still there. Diamonds are a luxury item and so a downturn in the global economy can drive the price of diamonds (pod) downward in a hurry. But, might not the market's perspective on this evolve? For example, gold (price is rising in the face of global uncertainty) is considered a safe haven for economic uncertainty and usually rises when currencies and economies are seen to be in danger. Might not diamonds, which are more easily transportable, become the new "gold". If this evolution in philosophy occurs, and it can happen over time, then MPV represents a tremendous safe haven, and this adds another premium to our shares The mystery to me are the TIGS. No one can read their minds and the only recent indication we have had of their intentions is PE's interview where he said that the owners (TIGS) are not interested in selling and want to take this into production. So, we can forget about any take overs happening. What will be the value of an MPV share when it goes into production? That is the question. PE said on BNN that he expects to issue a dividend of 1.00 per share, this is astonishing. If we take a hypothetical return of 5% (which seems acceptable by today's standards - you get 1% possibly from the bank) then 1.00/.05 = 20.00/share. Not bad for what I paid for MPV. However, if we add more premium to a best in class company which has been de-risked, might we not see another 30-50% which tops us out at 30.00/share? This assumes that construction and operations go well, and that there is no more dilution to the number of shares. Regarding buy-outs, I don't see DeBeers being able to afford to buy out MPV, and I don't see MPV buying out DeBeers. I am fearful that the TIGs will screw us and take out MPV at a less than lucrative price. In my dream world, perhaps a company will buy out both DeBeers and MPV simultaneously, but this is so remote and expensive I can't see that happening either. Well, my strategy will be to collect dividends for around 5 years and then sell whenever I view there to be a top of market.
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