Tiny re:Your question. Now that I am finished travelling.
On November 22 nd I posted a comment Part of it was:
"
With a similar 10th sale we should have 60 million US for the fourth quarter which should translate into about 35 million profit canadian or about another .21 cents per share. Read more at https://www.stockhouse.com/companies/bullboard/t.mpvd/mountain-province-diamonds-inc?postid=27010051#14gtGpdAIU9XeKes.99"
On December 14th I posted the following:
" Where we stand on December 31st 2017/2018 On the conference call it was stated that at the end of 2017 December 31st we will have a cash position between 25 to 50 million dollars.
Our only debt will be the 330,000,000 US payable in 5 years. However we will have the opportunity to buy back 33 million in year 1 and 2 if we wish to do so.
It was also stated that the scaling back of the east wall was all caught up and is now at the current mining level.
So let's break this down:
Cost per ton to produce carats according to the feasibility study is 72.51 per ton after cleaning sorting and processing.
Table 1.5: Operating Cost Estimate Summary
WBS Description Avg Anl Cost ($) Avg Mined ($/t) Avg Processed ($/t)
A Mine 98,505,321 3.49 33.24
B Process 22,118,252 0.78 7.46
C Power 17,886,381 0.63 6.04
/D Freight 18,646,525 0.66 6.29
E G&A 41,701,193 1.48 14.07
F Contingency 7,198,648 0.26 2.43
G Management Fee 6,361,794 0.23 2.15 -
Total 212,418,114 7.54 71.68
Note: Unit costs per tonne mined are presented against materials mined in the operational phase only. Cleaning/Sorting cost at $0.546/ct ($0.83/t processed) is in addition to the $71.68/t processed ($72.51/t processed).
For the third quarter we averaged 73 dollars Can. per ton to produce the diamonds and for the nine months average it is 80 dollars Can.
For 2018, the GK operational plan anticipates total ore processing of approximately 3,115,000 tonnes, recovering between 6.3 million and 6.6 million carats (100% basis) and reflecting a recovered grade of between 2.02 cpt and 2.12 cpt. This reflects a current expectation that the grade experience of 2017, specifically that attributable to the Centre and East lobes of the 5034 pipe, will continue at least into 2018, and may be subject to revision pending completion of the annual GK mine reserve statement update. Actual cash costs of production, including capitalized stripping costs (see NonIFRS Measures section), over the first three quarters of 2017 were $80 per tonne processed, versus $79 projected for 2017 in the 2014 Feasibility Study. The 2018 GK operational plan anticipates cash costs of production including capitalized stripping costs increasing to a runrate of $100 per tonne. The increase in cost is due primarily to the increased waste removal attributed to the push back of the planned 5034 east wall. The 2018 GK operational plan anticipates sustaining and other capital expenditures (other than capitalized stripping) of approximately $47 million (100% basis), approximately $31 million of which is in respect of additional open pit mining equipment, including drill, shovel, haul trucks and ancillary equipment to accommodate the increased waste removal of the 5034 east wall. Exploration expenditures for 2018, if any, will be expensed and not capitalized based on the Company’s accounting policy.
Our only other expenses are interest on loan , selling, general expense and administration.
Let us now do a little bit of math for 2018 using the lowest projections from De Beers, that being a carat count of 2.02 for total production our share 3,085,000 carats, cost per ton 100 dollars Canadian and we will assume the diamond market does not recover and the average sale in 2018 per carat is 70 dollars US. We will assume a dollar rate using todays number which is 1.2873 US to Canadian or .7844 Canadian to US.
The 100 dollars cost Canadian per ton converts to 38.83 US per carat.
Sale of carats 3,085,000 at 70 US 215,950,000
Cost of production 38.83 per carat -119,790,000
Gross profit 96,208,575
Gross profit in canadian dollars 123,849,298
Interest payment 26,928,000 US -34,664,414
Selling, general and administration -13,336,000
Profit 2018 75,848,884
Now we can add the 25 to 50 million carried over from 2017, even at the lowest number that is over 100,848,884 in cash at the end of 2018. There is plenty of room here to make the 33 million US or 42,480,900 Canadian principal payment to reduce the loan and possibly pay dividends for the year of .15 cents per share for 2018 and to start the 2019 year with a reduced loan and 34,330,484 cash in hand.
Please if someone can go over these figures and show me I am wrong show me . I keep going over the math and It is always the same, A BIG CASH COW. why doesn’t the market see this.
Read more at https://www.stockhouse.com/companies/bullboard/t.mpvd/mountain-province-diamonds-inc?postid=27159291#KIE6lEYalrFoAvJe.99 "
I stand by my analysis and I think the market is starting to recognize the potential of this company.
This is an absolute minimum dividend return for 2018 , but I think we will do better. I predicted we would do 60,000,000 US for the third quarter and we ended up with 59,480,000 US . Ouzo I guess I am out to lunch like you are , I was short 520,000 thousand . Ouzo don't bother sending me private messages your ignorance supercedes your intelligence and you are on ignore from this moment on, you are not worth responding to. Tiny I hope this answer your question , if not send me a private e-mail.