Michael Smedley Mountain Province Diamonds Inc. MPVD-T BUY Jun 09, 2016

Likes the people and is sort of attracted to the deposit. He would probably own it except that he thinks Dominion Diamond (DDC-T) is cheaper. With Mountain Province you have the development risk and the problem of turning on that big plant.

Doesn’t own this, but owns its sister company Kennady Diamonds (KDI-X) which is next door. Mountain Province is in a joint venture with DeBeers. Feels that someday Kennady will ultimately be integrated with this company.

A diamond developer in the Northwest Territories. Partnering with DeBeers in developing the Gahcho Kue mine. It has just started to come into production, which is usually when he likes to look at these. An extremely high grade mine. The valuation is attractive.

Building a diamond mine in the Yukon. They have been working on the mine for almost 10 years, but are now just about ready to turn on operations. You make good returns in mining stocks when they go from a development company to a producer, because you get a premium as a producer.

The deposit is working very well technically, but the diamond market is in pretty rough shape now. It is responding to worldwide economic slowdown. The only diamonds that seem to be commanding big prices are the “fancies”.

Diamonds. This just rolls on. When he bought it, it was 24% prospective yield on the basis of the 3 Irish billionaires who control the company, who simply wanted dividends out of it. It is readying and going into production shortly. He is still very positive on this.

Building a mine with DeBeers that should go into production by the end of the year. He prefers Kennady Diamonds (KDI-X) as he feels it is significantly undervalued relative to what he thinks they have, especially in the context that there is a mine on their back door that will be operating soon, and this will come back into DeBeers fold.

There are some issues in the end markets for diamonds. India had a de-monetization of currency late last year. The Indian diamond cutting and polishing industry is pretty much a cash-based fragmented market place. De-monetization has created quite a disruption and created problems for producers selling into it. He would be a little wary about this. However, there has been some M&A stirred up within the sector and there could be value buyers sniffing around, but the near-term profitability is a little bit murky.

Sees no change to the dividend theory. The 3 Irish business millionaires actually control the company and are holding it long-term for the dividends. The company has some costs going on disadvantaging it. The diamond sector itself has not produced really stellar performance. This is a “wait and see”.