Peregrine Diamonds Ltd. PGDIF

RE:Owning the entire Diamond Supply Chain

[Silverwhere]

Now THAT is a TEN star post! Chinese food for thought.

justanormalguy wrote:

If I'm a wealthy business tycoon with a sizable number of jewelry retail stores with aggressive plans to grow world-wide, I get my financial, tax, legal, marketing, economists and retail people together to complete a comprehensive analysis.

I say this is my objective: I want to own and control the supply chain of diamonds for my business; production, cutting and polishing, distribution, marketing and retail. And here's what I want and why.

• 100% ownership of a diamond mine with an abundance of gem quality stones with LOM potential of 20 years

• A high margin potential and expansion potential at a mine that is producing or will produce

• The mine must be in a politically stable region

• Full ability to choose and pick those rough diamonds that I want in my retail outlets, the rest I put up for auction

• 100% ownership of a cutting and polishing centre, in a cost advantaged, low tax environment, and I choose what the finished product should be/look like

• I own the distribution channel to my retail outlets for these diamonds

• Exclusive marketing rights for all diamonds coming from this mine, preferably from a region where we can command a premium to retail diamond pricing by using a unique and original marketing value proposition (ie Baffin Island “Ice” Diamonds), and from a country the world respects and envies and has good trade relations.  I want the best Marketing agency in the world.

• I have or expect to have retail outlets in all major economic regions, world-wide

• I have access to US dollars to get all of the above done, that is, what we don't already own

• Now, here's where we make a difference, CASH FLOW. Because we have a mine in Country A, Cutting and Polishing Centre in Country B and/or C, and Retailers world-wide, we look at what flexibility we have in transfer pricing along the entire supply change and the various regional tax rates. Using this to our advantage, we maximize profit and cash as best we can in the higher margin, lower taxed regions.

Now, tell me the maximum amount I should pay for a diamond mine or soon-to-be-expected diamond mine. Then I'll go find an experienced, mine constructor and operator and we'll partner. Albeit, because of the complexities of such a deal, it will take several months.