Hello DJ,
Market cap on WSP is 49 million X $5.25 or $257 million, whilst cap on SUF is 29 million X $5.00 or $145 million.
While this makes no sense to me, and I certainly don't want to inflame WSP boosters, it is interesting to note that the market cap of Diamet is $629 million, while Aber is $490 million (or $370 million net of cash). Whatever Aber's interest in Snap Lake turns out to be, it should be a minimum of 20% of WSP or about $50 million in market cap, pushing the value of Aber's other assets to $440 million or $320 million net of cash.
All I know, from talking to many folks who should have a good understanding of WSP, is that the grade of over 1 carat per ton will likely hold up, while the valuation per carat, presently above $300, likely will move lower. As I'm told, a value of greater than $225 per ton will make a mine, but at numbers lower than this, the economics becomes less compelling. And it will be several years before production.
But I own SUF, and not WSP, so clearly I have been backing the wrong horse this year. I truly hope that WSP is vastly successful, as this would help all diamond stocks, but I'm afraid that any disappointment might pummel an already downtrodden sector.
Just the thoughts of a long SUF-fering shareholder,
Confluence
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