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Gold/Mining/Energy : Trump's 12 Diamond Picks, Discussions Limited -- Ignore unavailable to you. Want to Upgrade?

To: George J. Tromp who wrote (1373)	10/16/1998 3:05:00 PM
From: peter matson	Read Replies (1) \| Respond to of 2251

George its good to see you posting agian- you have become somewhat of a security blanket to us investors over the past year. If you wouldnt mind Id like your view on the current stock price and maybe your feelings on what Cannacord is trying to do. They seem to buy and produce a minny rally then sell all the way back down again. It would seem to me that they would make more money running the stock up selling off part of position and shorting on the way back down. But these small swings has me personally baffled. Maybe they want to discourage many investors to sell out now? Regards TIA

To: George J. Tromp who wrote (1373)	10/16/1998 6:02:00 PM
From: Tomato	Read Replies (1) \| Respond to of 2251

I admit to knowing very little about figuring NPV, but the numbers posted by Maintenance on the WSP thread don't make a lot of sense to me. For one thing, isn't taking 10% as the discount rate very high in this interest rate environment? Aren't you supposed to use as a discount rate the risk free rate of return? Am I wrong on that? Anyway, here's a summary of the numbers from the scoping study, Maintenance's numbers, and my numbers. I wish somebody with an MBA or business background who knows of what he or she speaks would set us straight, since the there's a big difference between the $6 plus figure of Maintenance and the $31 number I come up with. BTW, I think I used 67% instead of 67.75% in my calculations of WSP's percentage interest. Scoping Study; Model 2: Assumes Combined Open pit and Underground Operation (Processing Rate = 1000 tonnes per day) Assumed Total Tonnage of Kimberlite Mined: 3,500,000 tonnes Mine Life 10 years Assumed Ore Value* $Can400 / tonne Assumed Diluted Ore Value $Can380.95 / tonne Assumed Total Capital Costs $Can 103.8 million Assumed Total Operating Costs Over Mine Life $Can 305.0 million Total Cash Flow (Assuming Current NWT Tax Structure) $Can 572.4 million Discounted Cash Flow Rate of Return (After Tax) 55.6% Maintenance Take: Assuming model 2 from MRDI, and assuming management , office and other overhead costs of $1,000,000 per year, and assuming 60% tax, and assuming 2 years to start production. Tons/year...............350000 Rev/ton....................400 Cost/ton....................87 Net/ton....................313 Gross margin.........109550000 fixed costs............1000000 Gross profit.........108550000 Tax...................65130000 Net...................43420000 Ten year life. Discounted at 10%.....227324376 Discounted 2 yrs......187871385.5 Startup cost..........103800000 NPV...................$84071385.5 NPV/Share..........$2.272199608 If you assume 2200 metres instead of 850, and all else equal, you may get 25 year life, or NPV/Share of $5.99, again at 10% To: VAUGHN (1306 ) From: Tomato Wednesday, Oct 7 1998 1:01PM ET Reply # of 1374 I was trying to figure out a value per share of WSP based on that David James report posted by VAUGHN. See if these figures check out.. In Situ Value: $400/tonne X 3.5 mil tonnes = $1,400mil Less $87/tonne operating costs - 304 Less capital costs - 104 Net value 991.5 WSP's 67% share 664 Divided by 37 mil shares fully diluted 17.95/sh or another way to do it... In Situ Value: $400/tonne X 3.5 mil tonnes = $1,400mil WSP share of 67% 938 Less 67% of $104m capital costs - 70 less 67% of $87/tonne operating costs -204 Net value 664 Divided by 37 mil shares 17.95 at 10 mil. tonnes, multiply by 3, or approx. $54/sh. Discount rate? What percent should one use? The current Fed. rate? 10% seems way too much. Don't you go with the risk free return? The figures on an old Yorkton report for Aber using 5% discount rate over 15 years go from $26.90 per share to $15.60 per share, a 42% reduction for current value. Subtract 42% from my $54 figure, and you get...$31.32/sh. If you want to subtract G&A from that...$15mil divided by 37 mil shares..40 cents per share off, or rounded off, $31 share. Add on to that something for Carat, Hilltop, and the possibility of a pipe under Snap Lake.

To: George J. Tromp who wrote (1373)	10/16/1998 8:21:00 PM
From: The Fix	Read Replies (1) \| Respond to of 2251

George....Have you ever heard of these guys? This story might be worth flagging. Poplar Resources Ltd - Diamonds recovered; Aardvark project expanded Poplar Resources Ltd PPX Shares issued 20,748,679 1998-10-15 close $0.15 Friday Oct 16 1998 Mr. W. Gennen McDowall reports A total 34.37 carats of diamonds have been recovered from processing 345 dry tonnes of kimberlite from the Lovedale mine. This mine is one part of the Aardvark project in the Theunnissen diamond field, South Africa. This bulk sample was mined from the pipe at the 100 metre level. The bulk sample was processed at the Star diamond mine. A high proportion of the diamonds recovered was of gem quality. The grade of this bulk sample is therefore 10 carats per hundred tonnes (cpht). This preliminary grade for the pipe combined with the quality of the diamonds recovered is sufficient to warrant a larger bulk sample. With this is mind, it is planned to acquire a 1,000 tonne sample. Eight hundred tonnes of kimberlite have already been stockpiled on surface towards this end. The quality of the diamonds recovered is particularly encouraging. Three independent valuations for this parcel of diamonds will be obtained. A preliminary valuation has been carried out in Johannesburg and the average value of the diamonds was found to be $109.35 (U.S.) per carat. These results are given below. It must be stressed that this valuation is preliminary and should not be construed as being a final valuation. % of Total No. Mass Mean Colour Par- US$ Value ct ct Range cel $/ct US$ Category P7 2 3.39 1.70 I-J 9.86 302 1023.78 Category P10 3 2.08 0.69 H-I 6.05 790 603.20 Category P11 12 2.35 0.20 H-I 6.84 190 446.50 Category GR2 12 1.71 0.14 4.98 150 256.50 Category BR2 29 5.94 0.20 17.28 145 861.30 Sub Total 58 15.47 0.27 45.01 206 3191.28 Category P12 181 18.90 0.10 54.99 30 567.00 Total 239 34.37 0.14 100.00 109 3758.28 The quality of the diamonds, albeit a small sample, was found to be similar to those found at the Star mine. The valuation of the four larger stones is shown below. The largest of these diamonds was a 1.92 carat stone. It was classified as a P7, I to J colour and was valued at $190 (U.S.) per carat, for a total of $364.80. The quality is borne out by the exceptional 1.46 carat P7 stone rated as I on the colour scale and was valued at $450 (U.S.) per carat, for a total of $657 (U.S.). The colour for the gem portion of the parcel ranges between H and J. The average value of the gems and near gems larger than 2.3 mm was found to be $206 (U.S.) per carat. No. Cate- of Mass Colour US$ Value gory Stones ct ct US$ P7 1 1.92 I-J 190 364.8 P7 1 1.46 H-I 450 657 P12 1 1.40 Boart 25 35 P12 1 1.24 Boart 50 62 At the 100 metre level, the kimberlite contains approximately 25-30 per cent country rock. This country rock dilutes the kimberlite and lowers the grade (cpht). The above bulk sample was processed in total. No waste sorting was carried out. In future operations, the project's mining engineer is planning to waste sort immediately after the primary crushing. This should lower processing costs and increase the economic viability of the operation. Delineation drilling of the pipe at depth will help determine if the country rock contamination continues with depth. Other parts of the pipe do not appear to have the same level of contamination. Mechanization of mining operations should also improve efficiency. The advantages of having an existing shaft and drives in place means that stoping can begin soon, allowing for further increases in efficiency and profitability. Work is continuing underground at the Lovedale mine with two objectives in mind. One is to continue bulk sampling the Lovedale pipe to determine its economic viability. The main objective, however, is to tap into the kimberlite fissures that intersect the pipe. It is known that two, possibly three, fissures can be accessed from the existing shaft. Drives are currently being extended at Lovedale in order to sample these fissures. Since the last update on the project, a further 2,800 hectares have been added to the project. This is the third major expansion of the project. The project is now more than 9,500 hectares in size. There are approximately 36km of fissures on the property, some of which are known to be diamondiferous. An important priority is to conduct mineral chemistry and bulk sampling on these fissures. Recent work includes 120km of ground magnetics. Poplar holds 45 per cent of Savannah Diamondfields (Pty) Ltd., which is developing the Aardvark property. The bulk sample at Lovedale demonstrates the ability of the Poplar/Savannah group to successfully carry out a bulk sample with a view to bringing the Aardvark project into production, fIXER