Fix,
Wonderful news. It doesn't get any better than this. I have been playing with some of the new info in the release. Now that I know that, in addition to the >10 carat size range representing about 4% of the diamond population by weight, the 1-5 carat size range represents 30% of the parcel by weight, the size distribution curve at Snap Lake is almost identical to Rex's Bellsbank mine. At Bellsbank, the average selling price is US$270/carat. A careful review of annual reports indicates that many of their rough large gem stones receive about US$5000/carat (over 10 carats in size and up to 100 carats...30-60 carat gem diamonds are produced here consistently). The point I am trying to make here is that at Bellbank, which has been in production since 1952, 4% of the diamond is responsible for >75% or more of the value. What is important for shareholders of Winspear is that if 4% of the diamond from Snap Lake(>10 carats in size) comes in at similar prices, say US$5000 per carat, it is easy to see that the large stones would make up US$200.00/carat of the average selling price. With the rest of the diamond at US90.00/carat, it should now be apparent that the bulk sample should stand up at close to US$300.00/carat without any problem AND COULD COME IN MUCH HIGHER. The cat is now out of the bag. Am I ever glad I bought more today. On Monday the stock should gap up with no offers until over $10.00.I am not kidding. Yes, I know everyone will say, but we don't have the 6000 tonne bulk sample yet. Given the drill inferred tonnage of the cone sheet easily and very conservatively exceeding 50 million tonnes, there is no reason why the market capitalization shouldn't expand to somewhere between $2-4 billion ($40-80/share). Given the risk profile at this stage, IMO, Winspear should be trading between $15-20 in anticipation of the bulk sample results. Hey packrat, have a worry free weekend.
regards,
teevee
Not only is the Fix in, the results are in too. |
