kaiserKaiser says Mountain Province gets back on track
2003-08-06 16:14 ET - In the News
John Kaiser, writing in a July 31 Bottom-Fishing Express, said that on July 28 De Beers opened its summer exploration camp at Kennady Lake from which it will conduct environmental baseline studies related to the Gahcho Kue (Kennady Lake) project of Mountain Province Diamonds (then $1.17). Mr. Kaiser recommended Mountain Province in December, 2001, at 62 cents; earlier buy tips were in December, 1999, at $1.75, and February, 1997, at $4.31. On July 30, Mountain Province said De Beers was starting work on a detailed cost estimate for a prefeasibility study on Gahcho Kue that would commence early 2004. In April, Mountain Province collapsed to 60 cents after De Beers announced it would not proceed with a prefeasibility study any time soon. The market interpreted this wording to mean that the Gahcho Kue project would lie dormant until at least early 2005. While MPV management struggled to emphasize that De Beers could change its mind any time, the market did not believe De Beers had used misleading or sloppy language. It turns out the market was wrong. Mountain Province remains a "Spec Cycle 100% Hold," with a near-term $2-$3 target, and the longer term $3-$6 target relevant again.