More WillP -
Author: WillP -- Date:1999-08-17 06:33:13
Subject: Question
I received an email question, asking what the value of
the DiamondWorks properties would be, if they were in
Canada.
It's a pretty easy calculation. DMW is in the first stages
of production, with the main properties a year or three
away. So...it's between Ekati and Diavik on the
production scale:
Well, if we assume that Diavik is worth $1.8-billion
Canadian, based on Aber's share price, with $7.2-billion
US in the ground; and assume that Ekati is worth
$2.4-billion Canadaian, based on $6.0-billion US in the
ground.... DiamondWorks, being somewhere in between
the two has a 50% interest in a series of projects worth
$3.0-billion US, so those projects would have a value of
$1.5-billion US to DiamondWorks, and should support a
current market cap. of $500-million. What's that? About
$2.50 per share. It's a heavy penalty to pay for civil
unrest.
Of course, I think the price depression is also due to the
financing fears, as well.
Regards,
WillP
Author: WillP -- Date:1999-08-17 09:23:45
Subject: Another Point
The recent private placements and deals has resulted in
a few interesting transactions:
a) The large share purchase by Ekuseni, and subsequent
acquisition of Ekuseni by New Mining, would appear to
be a bit of a vote of confidence in DiamondWorks.
Given the voting arrangement, the typical comment
"acquired for investment purposes" would appear to ring
truer than usual.
b) The participation of Elliot and of Westgate is another
"investment deal", apparently.
c) Buried deep in a previous news release was the fact
that Invesco was picking up 435,000 shares and a like
number of warrants. Invesco was the outfit that dealt
some of the Venezuelan gold properties to Carson...the
fact they are still participating in DiamondWorks would
appear interesting, and perhaps, quite positive.
Right now, speculative interest in DiamondWorks,
among individual small investors, appears to be at a low.
Regards,
WillP
forums.canada-stockwatch.com
"... appears to be at a low." - hey, no kidding -
chart.canada-stockwatch.com
Better than a double by Christmas, i figure. Somebody will pay attention, sometime. |
