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Gold/Mining/Energy : Canadian Diamond Play Cafi -- Ignore unavailable to you. Want to Upgrade?

To: russet who wrote (254)	10/29/2002 7:36:55 AM
From: m.philli	Read Replies (2) \| Respond to of 16206

Thanks for the info guys. Wow. Russett I`m impressed. When values are given such as 100 a caret what are the minimum sizes that figure in these estimates? Is it .5 mm or larger/smaller? On an operating mine how small will they go? Do they collect smaller and ship it off for sandpaper? What I `m interested in understanding is the Hadley "King Eider" drill core results. They ran the complete core not just "hot intersects". 5 metres to 100 metres (some results still pending) They stated the cutoff was 0.10 mm. There were not many diamonds but the largest (so far) was over 1 mm x3. Of these, where can my head say. OKAY, in a operating mine what counts. 0.10? 0.5? 1.0? Where does it get interesting? 0.25? (I know that has value) Guess I`m trying to ask: Where can we start counting millimetres diamonds as money if we want to use a valuation of say 100 a caret? (stumbling here but I think you see what I `m getting at)

To: russet who wrote (254)	11/1/2002 9:23:31 AM
From: Famularo	Respond to of 16206

Aber Diamond Corp. (ABZ : TSX : C$29.00) - BUY - 12-month target price: C$35.00 Comment: The potential for Aber to pay large future dividends The Diavik Diamonds project development is ahead of schedule and diamonds are now expected to be delivered to the joint venture partners by February 2003. This implies that production start-up will occur prior to year-end. One of the key factors in allowing for a faster start-up is related to pre-stripping of lake bottom sediment overlying the A-154 North and South pipes. The nature of the overburden has allowed for preferential removal of material overlying the A-154 South pipe. Specifically, the material has not retained greater than expected water content due in part to the success of the diversion dike holding back the waters of Lac De Gras. We have revised our model allowing for an earlier start-up of production, and outline opportunities that can result in significant upside earnings for Aber. In particular, we focus on the potential for Aber to become a large dividend paying investment pro forma 2006-2007. We have concluded that, once debt-free, Aber may be in a position to issue an annual dividend of between $1.00-1.50/share. If such a dividend were to be considered, what yield might be applied? We have outlined comparative evidence that indicates that yield potential in the 3-4% range could be considered. We do not think it unreasonable to consider that Aber may trade at a premium multiple in the 15-16 times P/E range, once full production is achieved by late 2003. As the Diavik project has yet to achieve start-up, there remain risks that exist in the initial phases of any new mine. Aber is rated a BUY with a minimum 12-month target price of $35.00.