Peregrine Diamonds Ltd. PGDIF

Market Value Equivalent Comparison: PGD vs SGF

[Kidlapik]

PGD has a market cap of roughly $40-million right now and SGF(Shore Gold) has a market cap of roughly $40-million. They both did some financing lately and they are both diamond exploration projects. Good reason to compare them so lets see. I will focus on their flagship projects.

SGF:

Flagship project - Star Orion South 100% owned
Completed feasability study
Probable minieral reserves: 279 Million tonnes at 0.123carats per ton for approximately 34.4million carats
Average Price: US$242/carat
Estimated value: $8.3billion
IRR 16% before taxes
Pre-production capital costs of $1.9billion


PGD:

Flagship project - Chidliak 100% owned
Pre-liminary Economic Assessment pending
Probable Mineral reserves: CH-6; 7million tonnes at 2.58c/t for a total
18.06 million carats
Average Price: US$213/carat
Estimated value: $3.8billion

Move 140million tonnes to make $4-billion or move 7million tonnes to make $4-billion. Which do you think is more feasible? Anecdotal sure, Northern costs to be considered, logistical issues to be considered etc but to think that PGD is currently valued BELOW SGF boggles my mind.

Say it costs US$75 per tonne for CH-6; (2.58carats x US$213)-US$75 = US$475/ton profit
Say it costs US$1 per tonne for Star-orion; (0.123 x US$242) -US$1 = US$28.77/ton profit

So right now the market has PGD in the same boat as a project that has virtually 0 chance of being either moved into production or acquired by a major.