Mountain Province Diamonds Inc T.MPVD

stock market

[stockpunter]

somebody please explain to DB the relationship between stock markets, jewelry purchases and diamond prices.

[claymore55]

Well, they are related, and simultaneously they are not.

[explman]

Can somebody please explain to SP the relationship with debt, equity and share price.....

[claymore55]

The primary reason is uncertainty. As the debt comes due there is uncertainty on whether or an extension/restructuring can be granted.  Also, there are lingering doubts on whether or not  the debt can be serviced and/or paid back. The worst case scenarios are a major stock dilution or liquidation of the company's assets. However, I believe with favorable rough diamond prices, MPVD

[explman]

I do believe that MPVD will carry on. IMO there is a major fix to the balance sheet coming which will require converting some of the current debt to equity, at a significant discount to keep the debt holders happy. It w2ill not be pretty, but at the end of the day the company will be stronger for it. 

[claymore55]

Basically I agree with you.  As for dilution, DD has some 40 million warrants exercisable at 0.78.  As he is also a major holder of debt, I don't think he wants anymore dilution then is absolutely necessary since his warrants will be worth more with a higher stock price. I bellieve the telling point will be the earnings for quarters 2 & 3.   QTR 1 was good, and if the