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

To: WillP who wrote (2626)	3/13/2005 1:24:51 AM
From: The Vet	Read Replies (1) \| Respond to of 16205

Willp.... Your rough figures look OK but consider it this way. Just to simplify the calculation let's ignore the cash and make it an all stock deal at 1 ABER for 8 MPV which is the same in present stock value terms. The current 58 million Aber shares at full production get 3.2 million carats annually from Diavik (40% of 8 million). That's .055 carats per share annually. By an issue of a further 6.75 million shares they gain 36% of the Gahcho Kue diamonds or 1.15 million carats annually. Those additional shares earn .17 carats per share annually. After the deal all Aber shareholders are getting .067 carats per share and increase of .0122 carats a share over their present annual production rate, so in the terms of production per share the deal would not be dilutive. So the clincher would be just how the mine development costs work out and when they would be paid.