Mountain Province Diamonds Inc. (MPVD.TO)

If everything goes right, you will get a 27% dividend yield on this. Towards the end of 2017 this should be a fully operating, first major diamond mine discovery and development in 20 years. It is more than two thirds completed. Expects a dividend will go high because this is controlled by 3 Irish billionaires, and they want a dollar dividend.

He likes that it is financed to production. People like to consume tokens of love like diamonds.

Because of the free cash flow aspect, this is one that he typically shies away from. The mine is now getting close enough to production where it is something he would look at, because over the next 12 months you can see potential for free cash flow. The Ghacho Kue diamond mine development is a fabulous asset. In the diamond space, there is really a lack of new diamond mines. The supply picture is pretty anaemic. The quality of the diamonds and the mine is such that it is going to be one of the highest margin mines globally. You need a 12-18 month view because ramp-up is going to be early 2016 and free cash flow will not start to come out of the mine until mid-2016. Thinks there is quite a bit of low hanging fruit for that mine to grow over time.

Has been held back recently by a rights offering. They are now fully financed to production. He is likely to own more. People at the top are doing well enough that diamonds are doing well, even if there is not a broad based economic expansion.

You don’t know when diamonds are really going to do well. This stock has been doing better recently. This one has the best undeveloped asset in Canada. It is a very good prospective mine.

A good trader and thinks it has been in the “most active” several times. Chart shows it has taken out all the tops of 2012-2014. It is speculative, but he doesn’t see any problems. Just don’t go overboard.