Diamond News Archives

(IDEX Online) – De Beers Group is pleased to announce that its Canadian mining business, De Beers Canada, has entered into an agreement to acquire 100% of the outstanding securities of Peregrine Diamonds Ltd, the owner of the high quality Chidliak diamond resource located in Canada’s Nunavut Territory, at a purchase price of C$0.24 per share, for a total cash consideration of approximately C$107 million.

The Chidliak resource was discovered in 2008 and is located approximately 120 kilometres northeast of Iqaluit on Baffin Island. A total of 74 kimberlite pipes have been identified at Chidliak, including the CH-6 and CH-7 pipes, which are the current focus of Peregrine’s Chidliak Phase One Diamond Development program.

The program has a total Inferred Mineral Resource in excess of 22 million carats. Peregrine’s recent Preliminary Economic Assessment for Chidliak points to the high quality of the CH-6 deposit in particular. An estimated grade of 2.41 carats per tonne and a diamond valuation of US$151 per carat (equating to approximately US$360 per tonne) make CH-6 one of the most attractive undeveloped diamond resources in Canada. Peregrine also has exploration properties elsewhere in Nunavut and the Northwest Territories.

Bruce Cleaver, CEO, De Beers Group, said: “The Chidliak resource holds significant development potential and will be an exciting addition to our portfolio. With a strong outlook for consumer demand, we are seeking new opportunities to invest in our future supply potential and look forward to growing our portfolio in Canada and working with community partners in the Nunavut Territory as we further develop the project.”

Kim Truter, CEO, De Beers Canada, said: “This investment reinforces De Beers Group’s long-term commitment to Canada, following our...

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References

1. ^{^} Skip to main content (www.zerohedge.com)

The S&P 1,500 is a very broad index. In fact, its constituent companies represent over 90% of the entire market cap of all US stocks. And, a frighteningly increasing number of them are the walking dead. 

By design, the companies that index does not include are the smallest, riskiest, most-likely-to-fail public companies. So you’d think the ones left would predict a fairly robust corporate financial profile. These are, after all, the 1,500 largest public companies in America.

But imagine if, on a cross-country road trip, you pulled off the interstate and found yourself in a small town of just 1,500 residents. What would you say the prospects for that town would be if 225 (and rising) of them were the walking dead? Zombies who would collapse under their own weight if they weren’t kept barely shambling along on a steady diet of government-subsidized brains?

While just a far-fetched tall tale for a town, in a rotting nutshell, it is very much the reality for the US stock market today. Believe it or not, 225+ of the largest and supposedly most successful companies are so operationally sick, so incapable of supporting themselves in any way, that they’d be bankrupt in a heartbeat without the zero interest rate policy (‘ZIRP’) loans that amount to a handout from the Fed. Without their corporate-welfare zombie brains. 

As Mike Maloney explains in his most recent sweeping economic update, these companies are hollow shells that only appear healthy from a great distance: ^[1]

Their debt burdens, bloated over a decade of borrow-‘til-you-bust, ultra-low-interest-rate policy, are so large, and their ability to generate cash flow is so poor, they can’t afford interest-only payments on that debt. Forget paying back any of the principal.

How do...