Peregrine Diamonds Ltd. PGDIF

Lucara

[justanormalguy]

Lucara was on BNN this morning at 11:40 ET.  There was some talk about M&A.  Basically, they are very knowledgeable about the current diamond industry and keep up to date.  They say it's very difficult to find high margin diamond mines.  Sounds like they are open to make a deal and want  to diversify their diamond asset base.  That's good news for the diamond industry.

I think consolidation is finally coming.  And it might not be from those having diamond assets, but rather those who want to diversify their mineral base (ie. Agnico Eagle, Ivanhoe), remote and cold climate operating experience, and a supporting balance sheet.  I get the sense the banks are starting to come around again, lending to those that actually have a physical product, not some dream with low barriers to enter.

Why do I get the feeling that RF/EF's price is very, very high, which is fine.  I've done/been through a lot of deals in another space.  Having leverage on the table and holding a full house rocks, that means you run the show, on your time, on your requirements, on your conditions, at your price.

[ekim]

Just watching the video now. It sounds like they would prefer to use paper currency for any transaction in the industry. For treasury...the cash they have makes very little with interest rates so low...so they would rather give that money back to the investor so they can decide where to invest it. Interest in diversifying in the industry. As I have mentioned before..they are a one company, one

[Kodiboy]

Being naive and paranoid at the same time plus just talking out loud. If LUC offered to buy us out with a paper deal before the .45 dividend expired, would we in some way be illegible for said dividend?   Could their offer be be a low ball one with that incentive in our favor? Right now using as basic as math as you can, they are worth 18 to 1, so if you have 180K of shares, you might get

[ekim]

You bring up a good point on the dividend. I think the new rules that came out last fall is that a take over needs to have a 90 day period to allow a potential white knight or such to come in. That would excceed the Sept 2nd ex-dividend date. On the dividend side of the topic...it is a great way for insiders to get some cash out of the company. Rather then an insider selling some shares on the

[Kodiboy]

Again, naive question. Could LUC delay the dividend?

[ekim]

doubt it. It is attached to the exact date of the quartelry dividend 1.5 cents plus the 45 cents. The shareholders get 46.5 cents. Don't worry...any deal would make sure both Robert and Eric would do the math correctly to not get screwed over by the dividend. LONG...PGD EKIM

[Kodiboy]

K thx Mike... Was it you or maybe our absent Mill, who figured out what the brothers average price is of their shares?

[ekim]

Not me. You have to remember Eric has been collecting a very nice salary over the last decade from PGD....and he has got a lot of leverage with those options....his net gain/loss from a paper share basis might not be as relevant as Robert's. Robert's only vesting is his shares...and he wants to make money from those. LONG...PGD EKIM