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Mountain Province Diamonds Inc T.MPVD

Alternate Symbol(s):  MPVDF

Mountain Province Diamonds Inc. is a Canada-based diamond company. The Company’s primary asset is its 49% interest in the Gahcho Kue Mine, a Joint Venture with De Beers Canada. The Gahcho Kue Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company’s Kennady North Project includes approximately 113,000 hectares of claims and leases surrounding the Gahcho Kue Mine that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) at 8.50 million tons (Mt) at a grade of 1.60 carats/ton and a value of US$63/carat. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/ton and a value of US$140/ct. Faraday 1-3 is estimated to contain 1.90Mct to 1.87Mt at a grade of 1.04 carats/ton and a value of US$75/carat.


TSX:MPVD - Post by User

Post by tinytoton Mar 26, 2018 11:43pm
158 Views
Post# 27785870

Numbers that need correcting - maybe lots

Numbers that need correcting - maybe lots

OK here are some numbers, I know they need corrections, possibly large ones. So using them as a starting point, will someone please correct/change them into numbers you feel are more realistic? If these numbers are anywhere close, I think now is a crazy time to dilute them with KDI stock.

Thanks.

Using 2017 results, coupled with 3,000,000 carats sold in 2018, I take the Earnings from mine operations per carat of $ 26 times 3MM carats and get the 2018 earnings form mine operations to be $78MM. Then subtract $14MM admin costs and get a net operating profit of $62MM.

That is about $0.38 per share in 2018.

Using the 4th quarter results, again coupled with 3MM carats sold, I take Cash costs of production per carat recovered, including capitalized stripping** $ 26 times 3MM carats and get  the 2018 COP of $78MM. Add to that $16MM admin costs and get cost of sales to be $94MM. I guess I should add to that $25MM of Sustaining capital expeditures to get a total cost of $119MM.

Assuming sales of 3MM carats sold at $70, I get sales of $210MM, less the costs of $119MM, leaves a net operating profit of $91MM.

That is about $0.56 per share in 2018.

Corrections please.


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