Peregrine Diamonds Ltd. PGDIF

Star PEA for comparison

[madmann]

https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aDIAM-2594077&symbol=DIAM®ion=C STAR-ORION SOUTH DIAMOND PROJECT: PRELIMINARY ECONOMIC ASSESSMENT POST-TAX & ROYALTY NPV OF $2.0 BILLION AND IRR OF 19 PERCENT, 66 MILLION CARATS MINED Star Diamond Corp. has released the positive results of the independent preliminary economic assessment on the Star and Orion South kimberlites, situated in the Fort a la Corne diamond district of central Saskatchewan, Canada, on mineral dispositions held 100 per cent by Star Diamond. The PEA estimates that 66 million carats of diamonds could be recovered in a surface mine over a 38-year project life, with a net present value (7 per cent) of $2.0-billion after tax, an internal rate of return of 19 per cent and an aftertax payback period of 3.4 years after the commencement of diamond production. The PEA highlights include (1): Total potential plant feed of 470 million tonnes at a weighted average grade of 14 carats per hundred tonnes ("cpht"), containing 66 million carats over the 34 year Life of Mine (2). ("LOM"); The Base Case scenario (Model diamond price) has an NPV (7%) of $3.3 billion and an IRR of 22% before taxes and royalties, and an after-taxes and royalties NPV (7%) of $2.0 billion with an IRR of 19%; The Case 1 scenario (High Model diamond price) has an NPV (7%) of $5.4 billion for an IRR of 32% before taxes and royalties; Pre-production capital cost of $1.41 billion with a total capital cost of $1.87 billion (including direct, indirect costs and contingency) over the LOM and an initial capital cost payback period of 3.4 years. 1. Cautionary note: The

[racer-x]

Canadian dollar joke to own

[ekim]

Some comparisons: Contingency - Chidliak -- 15% -- Star Orion 7% Marketing/Selling Cost -- Chidliak - 4% -- Star Orion - 1% Discount Rate -- Chidliak 7.5% -- Star Orion 7% Diamond Price Escalation -- Chidliak - 2.5% -- Star Orion -- 2.0% Not sure about the contingency. I agree with the difference in Marketing/Selling as Star Orion will produce bigger and fewer stones. Discount rate and diamond

[shneps]

3.4 year pay back period AFTER THE START OF DIAMOND PRODUCTION. How many years of overburden stripping is it going to take before any diamonds are actually in production? $1.9 billion for what 5-6 years before you get the first diamond and then at 0.14cpt (even with good grades) is alot of money to be financed over many years before a value return,on a market that could go any direction. That is a

[shneps]

Sorry. I just read that it is four years of stripping. That is 7.5years before for a payback return. That is significant on probably $2 billion dollars of investment. Plus, who knows what the geotechniclas are going to comeback showing the hydrological forces of the overburden. This may require slurry walls to keep the slopes in place. Significant dollars here. Cheers

[cudjo]

projects are different, but a mine of life of 38 yrs versus 10 (our last PEA), 66 million carats versus 22, IRR 19% vs 30% 4 times the NPV of the first PEA.  Even with that, anyone thinking that the PEA due here the end of June will light rocket fuel, or put the train on the tracks, is fooling themselves. This has and will do nothing for the s/p at DIAM.  To get to world class for pgd

[shneps]

Yes but even if you were to finance $1.9B at 3% for 7years that is $400,000,000 million dollars. Rio Tinto wouldn't have to find the financing but it still needs to be accounted for. That is a shite load of capital risk. I don't care how big you are.

[cudjo]

no doubt, plus the fact that PEA's all are usually full of it as well when the glitter starts coming out of the ground, discovery is what I think, PEA is what I hope, FS is what I know, and most important the golden rule, them with the gold makes the rules.  We require gold, and will know soon enough.  Good luck.

[griefman]

Hey Cudj, I’m in the states right now but I’m guessing yer not living in Hawaii?   Or maybe u r? Do they use trains in Hawaii?  I can’t actually remember seeing one or tracks? 

[ekim]

No idea on the context here...but if they did have a train in hawaii...pretty sure this would be the one: LONG...PGD EKIM

[griefman]

Nice one Mike...we need more “rocks”....

[cudjo]

trains everywhere, except here kodi, even in Hawaii, ;), with any luck, maybe one will get built on Baffin.  Good luck

[griefman]

Apparently they do indeed have many train lines on every island, and soon there will a rapid transit line for the Honolulu area where traffic congestion can be brutal...aloha!