Peregrine Diamonds Ltd. PGDIF

RE:Saturday Morning Ramblings.

[ekim]

Nice ramble.

On a couple of points there:

"As long as Nasser is CEO of BHP, they won’t touch diamonds. After he is gone they might."

Interesting that Anglo is thanking the diamond division for being so profitable and it was recently mentioned that the money generated is fast approaching the money generated from Anglo's # 1 business - iron ore. Got to think BHP is looking at this and thinking...I left Diamonds because it was so insignificant compared to iron ore and other base metals that we produce...maybe they will think twice on that thought.

"I think it unlikely that the best pipe has been found."

I believe in the geosoft presentation I went to, the quote from the person was that they have hundreds and hundreds of targets at Chidliak. He was given full access to the data on Chidliak and it sounded like he was surprised at how many targets they actually do have. This bolds well for the future opportunity and possibly another high diamond count pipe is somewhere out there.

macro picture looking good for diamonds.
I watched a video yesterday on Gold and the wedge that is forming.

Companies like barrick and Goldcorp are pressured in this point of time to cut and costs, expenses, reduce expansion, etc. and the speaker talked about how these companies have no reserves or projects that will be mined in 2025 or 2030 and grassroots exploration is dead.

So, yes Gold may go to $3000 or $4000 per ounce in 10 years...but if you know this, would you invest in Goldcorp or Barrick. Sounds like a sure bet...until you understand this wedge and understand that they have no gold to mine when the price is up there and therefore no cash generation for companies like Goldcorp or Barrick. I thought this was a very interesting concept.

LONG...PGD

EKIM