Mountain Province Diamonds Inc T.MPVD

Rough Price Index strongest in over a decade

[Sparks]

So the market is in a better place (significantly) than when the company delivered its first Mine plan, there are a lot more diamonds than expected at GK and the life is probably 2040 at least in GK. 

There are a lot more Diamonds in Kennedy than what we assumed when we bought the asset . None of theses are recogniosed on the balance sheet yet just noted in the accounts as a note - but they are tere we are told!! and Thats even before the  additional exploration this month.

The EBITDA  this year will (assuming no external Economic crash ) far exceed that of  2018

But the share price remains a fraction of what it was in 2018 and 2019.

Why
Bond overhang- but the latest offer to provide more finance does not address the bond overhang specifically and leaves the market wondering what is really going on here. Many independent people not jaundiced by the past, if asked to refinance US300m on a business that will make over  EBITDA $100m this year would not say this was an insurmountable ask . Especially when it will only be a US$200-225m requirement at year end

No accurate reflection of value on the balance sheet- no insistence that inaccurate and misleading provisons of over CAD350m be written back. No clear message to shareholders/market that this will happen. We konw the provisions must be written back according to the acc standards so why not broadcast it.

Pending Refinancing transaction- Price will go nowhere until this is executed. Lot of talk about how this is the starting point to sorting the bond issue but no clear statrement funds will be used to repay the bonds and that there is no intention to dilute again, and regardless a  heavy price to pay for finanace when the underlying business is in great shape in terms of rough prices. Just call it what it is pay back dont start saying its massively supportive. THe transactions with DD have been evry beneficail to DD over the alst 18 months and he has made a graet return, tjhe company needed them at the time so OK lets move on... but the latest one i see differently its potentially another high teem percentage of the shares at an option of .80c for 5 years with a nice annual return. Now thats really sweet when you look at where the comoany is at when the terms were offered. Thats the starigh assessment -the answer to it would be well then go and buy more shares and that is correct except that the latest transaction in the way it has been broadcast has not addressed the uncerttainty with a clear plan. A simple announcement showing production with cash flows for the year and next would deliver this.

But there is nothing other shareholders can do, no option to participate in the geenrous terms offered, no alternatives being proposed by managment so it looks like there are no choices other than sell or take your medicine..... even though we are no longer sick...

Good luck to all

[Diamondboy123]

https://www.diamonds.net/News/NewsItem.aspx?ArticleID=68299&ArticleTitle=Rough%2bShortages%2bCould%2bLast%2b10%2bYears%252c%2bBain%2bSays

[Diamondboy123]

Gonna buy tomorrow.  This thing gonna bust open. Trust me. Rough diamonds are priceless.  Now is the time.  

[szackoa]

somebody dont know Debeers oewns 51 pcnt