Peregrine Diamonds Ltd. PGDIF

What Price?

[oiltar]

We can all guess at a price of a PGD take over.Some will be low some will be high.

But lets make some educated speculative figures based on what is not yet proven but looks like its possible.

CH-6 total targeted diamond inventory of 15 million cts @  $250 CDN per ct = $3.75 billion value (That is unheard of in a sinle diamond pipe let alone a small one) but very likely the case.

CH-7  7million cts inventory @ $250 CDN =  $1.75 billion value

CH-44 2.5 million cts @ 250 CDN = $625 million.

So it is reasonable to estimate a total is situ value of $6.1 billion CDN in a tonnage foot print of only 24.5 million tonnes in the targeted program now underway

None of these figures take into account for the other 5 pipes deemed by the company as looking economic.

It is very possible we will have well over a $10 billion resource in time.

So what is the current value of PGD? Well if we use a 5% discount we would get $500 million (all 8 pipes in) CDN.

If we assumed the current mine plan of only the three pipes now under the targeted mining plan we would get $300 million.If the pipes prove up over the next 4 months then its safe to move the discount rate to 10% as we enter the PEA phase.

If we have 300 milllion shares outstanding using the 5% discount we get $1 per share.
If we use the 10% discount then we get $2 per share.

Now who here thinks this is not economic and that $500 million in a buy out is not reasonable?

You can throw figures around all day but we will not know the buy out price until it happens.But I think its safe to expect 10 times todays price.If the other five pipes are added to the mix then even that figure would prove low.There is great risk in PGD.The risk is not owning any.

[Gauwd]

good post, while I think your ahead of yourself, laying out your thoughts and opinions instead of stating them as a fact gains a huge amount of credability.  In time, the pipes will either prove or disprove your numbers. We will know a lot more this time next year. If they prove out, you will have another project that you can claim you had it right all along. I do agree with

[oiltar]

Gauwd thanks for you post as well. When MPV collapsed from $2 to 50 cents due to Debeers claim and I quote" Nature has been unkind to us at Kennady Lake" (the projects name before changing to GK) But I when through all the data I could find and felt that Debeers just buying Wispear and constructing Victor was leaving them short staffed in Toronto so by dropping the agenda for Kennady

[mill44]

My only problem with the logic is the environment. Most miners have been bleeding cash for 4 years now and we don't know if that has ended yet. Buying PGD now would mean paying for every speculation on Chidliak. Some will turn out ok, some will not. If you can sell it to your board as too cheap to leave it there, good. But in PGD's case there is little chance you will get it at a bargain