Peregrine Diamonds Ltd. PGDIF

Owning the entire Diamond Supply Chain

[justanormalguy]

If I'm a wealthy business tycoon with a sizable number of jewelry retail stores with aggressive plans to grow world-wide, I get my financial, tax, legal, marketing, economists and retail people together to complete a comprehensive analysis.

I say this is my objective: I want to own and control the supply chain of diamonds for my business; production, cutting and polishing, distribution, marketing and retail. And here's what I want and why.

• 100% ownership of a diamond mine with an abundance of gem quality stones with LOM potential of 20 years

• A high margin potential and expansion potential at a mine that is producing or will produce

• The mine must be in a politically stable region

• Full ability to choose and pick those rough diamonds that I want in my retail outlets, the rest I put up for auction

• 100% ownership of a cutting and polishing centre, in a cost advantaged, low tax environment, and I choose what the finished product should be/look like

• I own the distribution channel to my retail outlets for these diamonds

• Exclusive marketing rights for all diamonds coming from this mine, preferably from a region where we can command a premium to retail diamond pricing by using a unique and original marketing value proposition (ie Baffin Island “Ice” Diamonds), and from a country the world respects and envies and has good trade relations.  I want the best Marketing agency in the world.

• I have or expect to have retail outlets in all major economic regions, world-wide

• I have access to US dollars to get all of the above done, that is, what we don't already own

• Now, here's where we make a difference, CASH FLOW. Because we have a mine in Country A, Cutting and Polishing Centre in Country B and/or C, and Retailers world-wide, we look at what flexibility we have in transfer pricing along the entire supply change and the various regional tax rates. Using this to our advantage, we maximize profit and cash as best we can in the higher margin, lower taxed regions.

Now, tell me the maximum amount I should pay for a diamond mine or soon-to-be-expected diamond mine. Then I'll go find an experienced, mine constructor and operator and we'll partner. Albeit, because of the complexities of such a deal, it will take several months.

[Silverwhere]

Now THAT is a TEN star post! Chinese food for thought.

[ekim]

"Now, here's where we make a difference, CASH FLOW. Because we have a mine in Country A, Cutting and Polishing Centre in Country B and/or C, and Retailers world-wide, we look at what flexibility we have in transfer pricing along the entire supply change and the various regional tax rates. Using this to our advantage, we maximize profit and cash as best we can in the higher margin, lower

[shneps]

I got to say everybody's coming up with great ideas. You just have to hope management is as brilliant as the supposed retail flunkies and is working on at least one.

[griefman]

Interesting indeed, but you are not a wealthy business man for a reason, I'm assuming that of course, and how you think, may or most likely think, is probably worlds away from such a wealthy business person who gets what he or she wants in the end at the expense of the little guy and can sleep at night just fine knowing they came out ahead, again. Is there some wishful thinking involved in

[Silverwhere]

https://www.chowtaifook.com/en

[griefman]

Correct me if I'm wrong, but having this company involved with Peregrine is not a new idea?  Seems like it has been thrown around for quite some time now.

[mrrbc]

Thanks Silverhwere. I sent Chow Tai Fook an email, imploring them to have a look at Peregrine. What can I say, slow afternoon at the factory. Still a shareholder, still dreaming. MrRBC

[Silverwhere]

Nicely done mrrbc! And Kodi is right - this idea is not new. Check out some of the articles here . . . . . . . https://www.google.com/search?q=chow+tai+fook+diamond+mine+acquisitions&sourceid=ie7&rls=com.microsoft:en-US:IE-Address&ie=&oe=&safe=active&gws_rd=ssl

[ekim]

Chow Tai Fook is still one of the many permutations at hand. To look at the news over the last couple of years and how sales has slowed for Chow Tai Fook in no way should take from the fact that Chow Tai Fook is a cash machine generating profit profit profit. It is like a big bank in Canada coming out that they only made $800 million in profit instead of $1 billion in profit...they still made

[Kidlapik]

Hey I msg'd PGD basicalling just asking WTF is going on and I got this in reply today: The 2016 PEA which is publically available on SEDAR outlined a 2017 program at Chidliak which would include additional bulk sampling and deep drilling at CH-6. Geotechnical drilling for advanced pit designs is included as is additional metallurgical/engineering design work.  The total cost of the

[griefman]

Well I guess that's the spec with baby...buy in now and roll the dice or hold or sell...3 choices, much clearer than what's going on behind the scenes and like the response states, obviously, we will know when we know...whatever the outcome, hopefully it will come sooner than later, again obviously, before winter starts officially.

[griefman]

To add, if you believe the response, there is indeed the plan to go ahead with additional drilling, not proceeding with the start of building a mine as some have suggested they should just do or if the finances were to come available from deep pockets, they would probably just insist on the mine being built like they don't need any additional proof if you will...unless they are not being

[Silverwhere]

Thanks for posting that Kidlapik. Waiting for that BAM! moment . . . .

[griefman]

Depending on your individual wants and needs, the bam moment could just being able to buy more cheap shares if another 10 cent offering comes into play.  I for one, still sitting on the fence on whether to buy back in, would love a 10 cent deal, love, love it! But yes, a bam moment is indeed on the horizon.

[ekim]

Thanks for the details Kidlapik. I seems like a repeat of previous details...but the main difference is that the sealifts in Iqaluit would be done by now...so if there was a question of not having all the supplies available for the $15 million programme available...theoretically I think your email response from PGD would put that nail in the coffin. It was my understanding that PGD would have

[mill44]

If you want to speculate, here is your chance. In my opinion it would be pretty ballsy to spend money on supplies for a 15M program if you are not sure that you will have 15M available. Can they be sure of that with a rights offering? Not without a backstop. Does it mean that they made a deal?

[griefman]

Who said they were buying supplies for the winter program...did I miss that to?

[ekim]

Wouldn't be buying...probably be bought...if they wanted to use the sea lift. Nothing confirmed of course. Fuel is the big one. There is a reason why you have pipelines, big trucks on the highways full of fuel products, trains with fuel carts and oil tankers on the ocean. I don't believe it is best practice to ship fuel products via airplane. That being said...I did see a post on

[shneps]

Sorry for the delayed response but I was travelling yesterday. Just an opinion but the PEA has always expressed the next work program as being a "2017 program" not a "winter 2017" entirely. Obviously the movement of supplies/equipment to site on a winter road is of cost and enviromental importance. Yet two things stand out to me. 1. Every photo I have seen on this site they

[Kidlapik]

Great post Schneps. If I had to take a stab at it I would say you have worked in the NWT in the mining industry? Also I just want to say once again that caribou will not be a problem with this site. Iqaluit is the capital and very "metropolitan" most folks do not hunt like the hamlet folk do. Also over the course of several years of caribou monitoring only 13 were ever spotted. 13 may

[shneps]

Sentiments exactly Kid. One thing I was just reviewing is related to the PP's and rights offerings. Our stats man Ekim and charts man Mill may be able to attest to this also. Everyone has stringently stated the last two financings as being 40 cents, dropping to 20 cents and than 20 cents dropping to 10 cents.Utilizing chart overlays of PGD and the TSX/V the observations I have made are as

[mill44]

For someone who looks only at the chart it might seem like a correlation, Shneps, but you and me who follow PGD daily, we know that that is more or less coincidence. If you read about rights offerings, you will see that it is considered the fairest form of fundraising because if you decide to participate you maintain your percentage of ownership in the company, if you don't you can sell your

[shneps]

Well said Mill.

[shneps]

Actually Mill you say that, yes over a three year period that may be a coincidence, but it also follows on a five year period. That is more than a coincidence. Push it out to a 10 year and it does become distorted. Come on Mill you are a stats man. That's a little more than coincidence. Coincidently.

[griefman]

Not sure why Mill was calling it a coincidence when this stock reacts to news and pretty much only news regardless of the general market place, IMHO.

[mill44]

Kodiboy, I think that you just cannot stomach to agree with me, I called it a coincidence exactly for the reason you brought up.

[griefman]

Huh?

[mill44]

 To clear it up for you Kodiboy: "Not sure why Mill was calling it a coincidence when this stock reacts to news and pretty much only news regardless of the general market place, IMHO." I think that PGD has been moving based on events related to the company.  So if PGD seems to move in tandem with Venture, it is just coincidence, in reality it's news that drives it.

[griefman]

Mill, thanks for proving my earlier point about you...in many of your posts you present variable ideas as being correct when they are actually contradictory, like your insistence to prove your coincidence theory by posting stocktalk charts to schneps to prove you are correct and then post to me that you think the stock is driven by news...so, which is it?  Both, yes, no?

[griefman]

Correlation should have been a better word. Mill, all I know is that no one is 100% correct all the time, except you, and you never reverse your opinion no matter what. I have posted that I agree with you at times, you somehow ignore that fact....

[mill44]

Kodiboy, my opinion is based on research and observation. The only reason I would change it is if someone found something that I missed and that something would substantially modify things. The rare times you agree with me you always add that it pains you so my statement is valid. The discussion with Shneps was if the market drives PGD or not and he asked my opinion. PGD trades on TSX so I looked

[griefman]

Mill, we used to be buddies, not sure what happened. For some reason, all I can see is red when you post, and that is on me. I truly want to start a new chapter and try to get along with you and I'm sure everyone here would welcome that...do you?

[cicerelli]

ill just jump in and ask why you change your name so often? It's just that my head didn't retain a few f them, and the one that you used before fivecarat is lost on me, as is the one before that. I do remember you beginnings though.  For me, it just insults my intelligence for you to pose as a new guy. You tried so hard to do that when you became fivecarat. Still......that name slips

[ekim]

I have been meaning to ask PGD if on all their prospecting wanderings over the years (mostly early years), if they have been able to locally source out a potentially good aggregate. Two fold --> One for bedding material for the road . The all weather road...but also the roads to and from each pipe and to and from the mill, etc. --> I have heard kimberlite tailings, etc. is very poor to mix

[mill44]

Shneps, this is what I see when I compare TSX and PGD on a 5 year chart: https://stockcharts.com/h-sc/ui?s=PGD.TO&p=D&yr=5&mn=0&dy=0&id=p61582315685 I can call the last year and a bit correlated. With Venture: https://stockcharts.com/h-sc/ui?s=PGD.TO&p=D&yr=5&mn=0&dy=0&id=p26560254894 With this maybe 2016.

[mill44]

Might be a chicken or the egg thing, Shnepps. A lot of blame fell on Dundee and their actions were for sure influenced by the overall market conditions, or at least Venture. The real question is if some took advantage of conditions to justify decisions made for other reasons. That we will never know. But let's watch the market and PGD for the next 3 months, let's say, and see what happens.

[mill44]

I don't see a PP as a problem. Just like a discount with rights, TSX wants to see a premium for PPs. The market is afraid of or hoping for, depending on if you are in PGD or waiting on the sidelines, a rights offering. It woud come with an abundance of supply, so cheap shares. Shares coming with PP would be out of reach, at least for a while, so whoever was waiting will have to go to the