Peregrine Diamonds Ltd. PGDIF

RE:PGD vs LUC

[ekim]

Lucara has turning itself into a dividend stream and not a growth story.
They can't even depend on rising rough diamond prices...but they do not correlate with the mass market in diamonds.

PGD hasn't even started its growth phase yet.

Lucara never had a high grade zone to focus on. It is pretty much spread out statistically.
Chidliak has a high grade zone that will create 3X the cash flow that Lucara is generating right now. That will last for 4 or 5 years...and extend as they go underground.

It looks to me like Lundin is wanting a dividend from Lucara for its Canadian and Swedish investors as opposed to acquiring/growing Lucara elsewhere. They are trying the organic growth path. Deeper is fine...but they may never find a similar pipe..even though they are searching.

DDC is trying the organic thing too...but Jay Pipe's capital requirements takes a big chunk out of dividends to help get going. Jay pipe is not an organic growth thing..it is a survival for the long term thing.

Chidliak has a huge untapped organic growth opportunity. Just waiting to unfold over the next decade.

LONG...PGD

EKIM