To: kidl who wrote (2790 ) 3/29/2005 6:54:51 AM From: james flannigan Read Replies (1) | Respond to Kidl, no offence taken,but to be clear on the target.I think C$5 would be a buyout price based on the dollar per ton value Debeers paid for Snap.I have worked the cashflow from the Debeers website using the now out of date information to come up with a ballpark EPS for MPVs share of the production.Because of the fact that no more stock will be issued,it is possible to with some degree to figure some kind of EPS.Using the DB web site the number I have is about .90 cents for MPV.If we were to put a 10 multiple we get C$9. Aber trades at a much higher PE.But if Debeers is right that the long term forecast is for diamonds to double in the next 6 to 7 yrs, it would not be out of the question for the EPS to double to say $1.80C. With the lowest PE of any public traded diamond stock, the price would be C$18.00.If we were to put an average PE of 20 ,well we now come close to Abers stock price.One thing investors must not loose site of is, $US 4 billion diamond value in GK now using the 27% increase Debeers has confirmed,would become US$ 8 billion if the long term rough price were to double.This puts GK in the top 3 or 4 in the world in term of value.With fact that Debeers has 7 mines in SA of that 5 are loosing money and DBRs has to give away 26% ownership to the blacks by 2014.GK will get the green light IMO within less than 12 weeks. Iam not in la la land,but if we can't use the known value of the ore to put a price on MPV shares,what other way do you value it?To use any methode other than cash flow ,no matter how crude would have you ignore the facts as most others in this play do.The ones that are selling stock IMO are la la land .Not the buyers.Only time will make one of us right. James
