"Do you have any idea how
costly it is to mine dykes??
No, I don't. Do you? If so, please post an answer.
The preliminary width and length of WSP's dyke, open in 2 directions, I believe, are known and indicate a minimum resource of 3 million tonnes and a possible resouce of 10 million+ tonnes. WSP owns 68% of it, and although they don't have a DeBeers to pay for the feasibility studies, if you multiply 3 million or 10 million by $343 and multiply by .68 you'll come up with a range of 700 million or so to 2 billion dollars as WSP's share. Divide by 37 million shares and you get a per share value of $18.91 to $54. (The market generally values the last numbers at a minimum of about 1/10 of those figures - so figure $1.89 to $5.40/sh)
Compare that with MPV with more shares outstanding- is it 47 million vs. 37 for WSP? Multiply 40 million tonnes times $100 ( a guess at this point) times .36, is it? I come up with 1.44 billion. Divide by 47 million and voila: $30.63 times .10 equals $3.63 per share.
Then, put into the equation the other properties of MVP and WSP. MPV may have more pipes and WSP may have a pipe or more rich dykes on Snap Lake, plus they're doing work on the Carat pty. next to Diamet's pty. Then there is another 100% pty. they're doing work on as we speak.
To summarize, both MPV and WSP look good to me. WSP doesn't have to worry about having as a partner a company that did to SUF what it did. Would you like to have DeBeers as a partner? They both look like buys, although I favor WSP with it's colored stones. I also think Sudhir Khanna is a pretty independent thinker and a trained geologist, and he thinks the min. value of WSP is $2.
Anyway, if you have any figures as to the cost of mining a dyke the dimensions of WSP's, please post it. Nobody else here has come up with a figure, and WSP has hired consultants who are working on that problem now. Hopefully, they're not so dumb as to throw good money away on feasibility of mining the dyke if it's a hopeless cause. |
