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Gold/Mining/Energy : MPVIF Mountain Province Mining
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To: tom eland who wrote (2005)7/16/1999 10:18:00 AM
From: MJB  Read Replies (2) of 2577
 
This is a classic case of a major mining company (De Beers) having a "bear hug" on the junior j.v. partner. The only defense that MPV can mount is through the promotion of the price of the stock and the raising of capital.

Geologically, it simply doesn't get ANY better than this. To have the stock trade at such a steep discount to the norm is a direct function of a lack of institutional following. No one's fault, but a reality.

That is about to change drastically and NOT due to anything management has done or will do.

The insitu value of the ore body is the product of three numbers: Tonnage, Grade, and Value per carat. We can assume tonnage (35MM+); we know grade (5034 - 1.71 cts./tonne) and will soon know Hearne, Tuzo, and Tesla grades but the third variable will arrive in August. So until that third variable arrives, there will be speculation but the big players won't take the big positions until it does.

When the diamond values are finally out, the analysts plug the three numbers into their models, and you get a number somewhere around U.S.$7-10 as a target price. I plugged the numbers into my model using U.S.$51 / carat as a benchmark and arrived at a VERY big number.

Bottom line: Do I have to spell it out???
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