GREY:PGDIF - Post by User
Post by
oiltaron Mar 29, 2015 2:03pm
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Post# 23574586
here is some interesting math
here is some interesting mathMatt Okeefe report on Diamonds.
MPV yearly share of cash flow from GK $172 million
Kaiser yearly cash flow from Chidliac $ 509 million
MPV IRR 32%
PGD IRR 77%
MPV market cap $562 million
PGD market cap $47 million
No go figure who is going to produce the largest capital gain.
MPV or PGD.
Just for the record 5 years ago I asked Eric to merge MPV with PGD with the view to create a diamond production powerhouse to rival DDC.
He flew to Toronto and did in fact talk to Patrick.
They both decided that MPV was further along but would keep the door open to a possible combintation if PGD found a good diamond mine.Well Chidliac is fare better than GK in terms of diamond quality and may even surpass in tonnage if all kimberlites under review come to make the grade.
A combintaion of MPV and PGD would get the attention of serious diamond investors.MPV with the worlds largest new diamond mine in the making and PGD with the richest.
Think about it again Eric and Patrick.It would be a stand out in the diamond mining industry.MPV could use its paper to buy PGD and that would allow for no income tax yet have two great diamond mines for both sets of shareholders.
We all should email both Eric and Patrick and ask them to explore this merger again.