MacLoud1MacLoud1:
Let mejust say for the record, when the FS said stones worth $180US at the mine was producing but not yet declared "commercial", I had a pretty healthy position in MPVD.
PE had a presentationon the website with numbers that legit projected $200-300m OCF for the 49% stake, stockhouse sharehoders were talking about a dividend play with $1 annual, and trips to Vegas being planned.
Then reality hit at about $70US per carat. My reaction was this is a fraud and/or a farce, and I moved out of the stock all but for a few hundred shares. Retained if need be to be the plaintiff in a class action lawsuit someday. ( Now it lookslike that day is nearer).
I was very sceptical of the results reported. The company said, smaller, brown, and floresence were the issues. I researched floresence and my finding was that floresence is not an issue for smaller lesser quality stones to any significant degree in the marektplace for rough, but that floresence IS and issue for gem quality or near gem quality stones and will have an effect on value. At $70US per carat, my conclusion was that we had a lot of smaller less quality stones in the mix and that floresence could in noway account for the drop in realized prices from $US180 to$US70. There had to be more :} :}
Looks like there is!
Seperatly, I wanted to look at Anglowhen the large indian investor showed up more recently buying the stock. I knew they owned DeBeers. WhenI looked at Anglo/DeBeers Ion the very first pass I see the CEO of Anglo commenting about the satisfied and successfull opening of GK mine and that the results are about "on plan" Saying that there is a slight decrease in realized prices due to mining different parts ot the 5034 Kimberlite, but that increased carats/tonne (mine grade)has just about made up for it. Nothing about small, brown, and flouresence being issues! Well that was an eye opener for sure.
So I dug in. My postings are the results I see in the variances between what Anglo reports for their DeBeers diamond business, and what MPVD officers/directors/KPMG are reporting to their stockholders.