RE:Stornoway Streaming dealStornoway has middling grades and middling tonnage and tiny margins. They had to give it away to get it financed. But it sure is interesting that they were able to raise so much money for such a mediocre mine. BTW, they used a 7% (versus 10% for MPV) discount rate to calculate their NPV and a 2.5% (versus 1-1.5% for MPV) real terms diamond price growth rate to arrive at an NPV $391MM (versus 500MM equivalent for MPV 49%). This is an excellent omen of things to come for MPV.
As far as KDI swapping assets with MPV, I really really doubt it. The TIGS have a potential high grade high margin prospective mining situation in KDI and they own it all by themselves 100% (more or less). I dont think they're selling or swapping anything for a long while unless the price is inordinantly high, and I mean inordinant. They know what they have with KDI and they have it without a ball and chain dysfunctional large bureaucratic/psychotic partner. Debeers wont pay that kind of price (yet) required to reclaim the KDI assets that they ironically gifted to MPV shareholders. They have plenty of reserves to work with at MPV, beginning with 5034 NE high grade pipe for the time being, and lots of time to consider their options with KDI.
As far as macro market conditions go, there may be a rotation beginning towards hard assets. The elevated uncertainty in geopolitics and the emergence of incipient inflationary signals may be driving that rotation, in addition to longer term cyclce analysis. If so, MPV may benefit if/as this rotation more fully develops. After all, high quality diamonds very near the point of being extracted from the ground (after 15-20 years of waiting) are another form of hard asset with much room to grow in most wealth portfolios. Throw in the potential for a dividend, and -Not a bad place to be positioned. Explosive upside with excellent downside protection. Smart money increasing exposure. Follow the money. Real risk here is liquidity-there is very little.