WillP you and I have been friends over a number of yrs and have always a great discussion all be it at odds at times.
Friends? Yes, James. I would characterize our relationship as such. Intelligent discussion and debate will not affect that, as I respect those capable of presenting their position, supported by facts.
But after the suggestion by Bloomers about MPVs 38 cents value I think its clear that any agreement with his take on MPV would be sending a message to the board that you think he is right.
I think there is merit in his numbers. I also urged him to consider some intangibles, like the premium accorded a diamond miner. You may recall that I do comparisons with Aber, or some other well known company, to ground-truth my own calculations. That might show the extent of the premium, if indeed it still exists.
You and I may have two different values,but to even show a passive interest his 38 cent value,shows his level of understanding.
One of the key problems with his calculation is that it doesn't give any value for a deposit not capable of delivering a profit. In that system for instance, Stornoway has a net worth of zero, or less than zero, since its assets are worthless and it has liabilities.
Such calculations will savage other companies, such as Tahera, by not including any exploration potential.
De Beers and Mountain Province said the 2003 desktop study produced an IRR of nearly zero, and that supports Mr. Bloomfield's calculation. I don't think you can go directly from such a calculation to a share price, however.
Ultimately, the market is always right, they say, although any buyer or seller inherently disagrees with that cliche. That would support your expectation that Mountain Province is worth between $3 and $4, currently. Will the new drill program results be close enough to sustain interest for the next several months, or will the prefeasibility blahs kick in again? I don't know. It's up to investors. A new sell-off isn't the slam-dunk it was early last summer, I don't believe.
Why don't you offer your own calculations to counter his argument? That might land you some new believers.
Best of luck either way, old friend,