Peregrine Diamonds Ltd. PGDIF

More EKATI Layoffs

[schocor]

Just hearing today that they have given all employees at EKTAI notice that all job positions are under review meaning more layoffs are coming at Canadas largest diamond mine. Clearly a sign of weak times in the current diamond market, and a sign that they are winding that mine DOWN. Might be good for those of us trying to develop a NEW mine though low production always leads to higher prices. Meh.not newsworthy per see, but at least it is industry related. I dont see this having much of an impact on the Do18/27 properties in Lac De Gras probably bad news for the long term outlook of that property.

[griefman]

Can’t see how bad news in the diamond industry helps PGD find a partner/buyer, or whatever they are doing...

[schocor]

Well, if "lower commodity production leads to higher commodity prices" doesn't makes sense to you, I am not going to be able to help you. Like I said, I am not sure it is good news for PGD. Good post griefman. Thanks for your insight.

[mill44]

That is a slow process, it takes years. Maybe Gawd was right, our kids or grandkids will thank us one day for investing in this.

[griefman]

I fully understand the supply/demand dynamic, what I’m saying is if the market is declining, then the interest in investing in it should follow suit in most instances, thus PGD is not negotiating from a position of strength.  If the commodity was booming, maybe a deal would have been done already?  I don’t know...

[schocor]

Sigh. And if the interest in investing stops, then what? Commodity get scarce, price goes up, and maybe investment picks up again? If the market was good for the commodity and the diamond market wasn't oversupplied by 3-4m carats a year, MAYBE we would have a deal by now griefman. Ekati produces about 5-7M carats a year, Diavik about the same and both have about a 5 year mine life - with

[mill44]

In a free market the price goes up and down to find a balance between supply and demand. Griefman is right about one thing, there is no assurance that the price is going to go up again. Right now the price is adjusting to the oversupply or diminished demand. The balance the market will establish could be lower prices, lower supply. Only demand or lack of supply can raise the price.

[schocor]

Demand for diamonds is down considerably in the last 4-7 years - the decline is as bad as it was in 2008-2009. Rapport tells us that the demand for large stones (+4 carat) is strong, and the market is good. Mid tier stones (1-4 carats) have been is less demand, prices are down modestly. The market has completely cratered for small diamonds - the junky matte "jewellery". This is the

[griefman]

Not sure what you’re sighing about? Look at the worlds demand for all types of SUV’s, that has caused Ford to sell only a few models of sedans going forward in the next year or so, one being the iconic Mustang. As a result many makers are showing a cash discount on sedans on-line even before the negotiation process begins in the showroom.  Auto makers are more than happy to make as many SUV

[schocor]

I don't think we are building a new diamond mine right now. WE MIGHT BE IN 5 YEARS TIME THOUGH, which might be the time the world DOES need a new one - the current large producers are quite lonin the tooth (EAKTI, Diavik, Australia, Debswana, those ones in Botswana etc). I think diamond demand is about 8% lower than where it as 5 years ago. This is considerable. And a fair bit of this decrease

[griefman]

I don’t disagree with the notion we may need a new one in 5 or so years, but now is not really a good time to try and sell this to investors as they have the upper hand, so as some have suggested, this project may get shelved if no deal can be made shortly, or the dreaded open hand to retail to pump more cash into it for exploration and confirmation. Its anyones guess right now, do you stay or do

[schocor]

Conversely, if you are in the diamond business, you probably need a new diamond mine in 5 years in order to keep your marketing operations supplied, otherwise you might get pushed out of the lucrative part of he business. As it usually takes 5-10 years to get one built, you need to buy one NOW. I am not aware of too many other quality projects in quality countries with quality exploration

[griefman]

Again, I don’t disagree with your outlook...you may well be correct. So, what’s holding this thing up, I can’t imagine they, whoever they are, would be negotiating this long with management.  Seems ridiculously long.

[schocor]

How long did it take you to close your last diamond mine financing deal griefman?

[griefman]

About ten seconds and she said yes! WTF does that have to do with anything?

[cudjo]

rotfmao, good one kodi

[schocor]

I agree that was a good one. You either have faith in the brothers - perhaps based on Robert's past, multiple successes - or you don't. I do. You either have years to wait, or you don't. I don't take any issue with the brothers holding out for a price they feel is fair. Turn down every offer until you get the one you want, because that's the one I want too. To put a ribbon on

[griefman]

Yea I thought we were having a somewhat normal conversation and then boom, negative jab.  I guess its easy to see who’s having problems sleeping at night, and it ain’t me!

[griefman]

I’ve said many many times, to each their own. I’m not putting anyone down for holding this as long as they can or want. Not for me, doesn’t make your decision wrong, just different. So please, don’t make it look like I’m being negative to your investing style or decisions, because I’m not. 

[cudjo]

it took 5 months from washingtons first bid to conclude Dominion.  PGD says it has been talking to companies for over a year and a half, doesnt take as long as you imply schocor, trouble here is IMO the bros price is too high and your going to see another destructive rights, or possibly a PP, either way, hundreds of millions more dime shares coming our way shortly, why else go to Sprott