Peregrine Diamonds Ltd. PGDIF

RE:Owning the entire Diamond Supply Chain

[ekim]

"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"

Clear example of this is Mary River on the North tip of Baffin Island.

Arcelor Canada produces iron ore and sells it to Arcelor Europe who then makes steel and sells that product.

I'm sure the tax accountants are deeply involved in determining the price that the iron ore is actually sold for.

LONG...PGD

EKIM