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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (6875)	8/14/2014 10:01:13 AM
From: Goose94	Read Replies (1) \| Respond to of 202922

Scotia Capital ups Mountain Province (MPV-T) stock target following diamond permit news Mountain Province Diamonds rallied Wednesday after Scotia Capital raised its target for the stock to $6.60 from $6.15, a sign that patience is paying off for the company and partner De Beers Canada Inc. The shares rose 1.4% to $5.90, leaving a market cap of $679.7 million, based on 115.2 million shares outstanding. The 52-week range is $5.87 and $4.90. Mountain Province recently lined up a banking syndicate to underwrite a US$370 million term loan to fund the company’s share of the Gahcho Kue diamond mine, which is located in the Northwest Territories’ South Slave region at Kennady Lake. Mountain Province and partner De Beers are on schedule for first production during the second half of 2016. Scotia Capital has upped its stock price target following an announcement that the Mackenzie Valley Land and Water Board has issued a Type A Land Use Permit and sent the Type A Water License for final approval to the Ministry of Environment and Natural Resources. These were the two major permits outstanding for the Gahcho Kue project to commence full construction and operation. “The timing of these permits is in line with company guidance of receipt in the second half of 2014, and comes almost nine years after De Beers initially applied to the Mackenzie Valley Land and Water Board for a land use permit and water license in November 2005,” wrote Scotia analyst Craig Johnson in a research report. Production in the first three years at Gahcho Kue is expected to average 5.6 million carats (100% basis), or 2.74 million carats attributable to Mountain Province. “The unique aspect of the Gahcho Kue project is its front-end-loaded production profile, which provides for a healthy internal rate of return and a speedy payback of upfront capital,’’ wrote Johnson in his report. “We continue to rate Mountain Province Sector Outperform,’’ Johnson said.