RE:RE:RE:RE:RE:STOP THE PRESS *** THE TIME IS NOW!!!! I have to agree with FlyBoy on the compensation issue. The fellows have done a good job turning the company around but they have also been handsomely rewarded.
If KLS is to move on and upward the equity compensation policy needs to be rescinded. Hopefully Bond and company realize this and will set aside sort term greed and revise the policy at this years AGM. Management have a pile of stock and long term compensation is, in my opinion is ample reward for good management.
If I remember correctly KLS have a flip in poison pill to deter unfriendly takeovers. Can anyone recall the details?
Hey Randy. There is no formula to support that valuation. What investors are looking at is previous diamond plays such as Diavik ( Dominion Diamond Corp- Rio Tinto) and Ekati ( BHP Billiton original operator sold to DDC for 500m in 2012). Check what happened to these companies share price once the mine commenced operations
Personally I believe the resource at GK to be very conservatively valued. A lot of the inferred resource has not be indicated. There was also a 27ct diamond retrieved by a drill. Large stones have not been included in the valuation. Odds on hitting a 27ct stone with a drill and it being a one and only are fantastic. So if you include inferred resources and the possibility of windfall profits from large stones there is considerable room to the upside.
Also our fearless leader Peter has suggested that a yearly dividend of $1.00 per share will be paid out once operational ( and likely debts paid – 2 to 3 years) which would price the stock much higher than the SP you are using.
So its a bet. No risk ...No reward . Just my 2 cents.