Member Info for korade

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• Triple Case (3% Pink Diamonds, 6.33M Carats):

• Revenue: US$1,115.8 million

• OPEX: US$168 million

• CAPEX: US$100 million

• Royalties: US$22.32 million

• Taxes: ~US$25.41 million/year × 9 = US$228.69 million (adjusted for higher taxable income)

• Total Costs: US$168M + US$100M + US$22.32M + US$228.69M = US$519.01M

• Profit: US$1,115.8M – US$519.01M = US$596.79 million

TO BE CLEAR THIS IS ONLY MY WORKINGS, NOTHING TO DO WITH KDR

To calculate the profit for each scenario in the updated Preliminary Economic Assessment (PEA) for the Lahtojoki diamond deposit, I’ll define profit as the total revenue minus total costs (operating costs, capital costs, royalties, and taxes) over the mine’s 9-year life, without discounting (i.e., undiscounted net cash flow). Using the calculations from the previous response, here are the profits for each scenario:

Assumptions Recap

• Revenue: Based on US$120/carat for standard diamonds, or with 3% pink diamonds at US$2,000/carat.

• Operating Costs (OPEX): US$168 million (5.6 million tonnes × US$30/tonne).

• Capital Costs (CAPEX): US$80 million (base), US$90 million (double), US$100 million (triple).

• Royalties: 2% of revenue.

• Taxes: 20% of taxable income (revenue – OPEX – royalties – depreciation).

• Mine Life: 9 years.

Profit Calculations

• Base Case (Standard, 2.11M Carats):

• Revenue: US$253.2 million

• OPEX: US$168 million

• CAPEX: US$80 million

• Royalties: US$5.06 million

• Taxes: Negligible due to depreciation (~US$0.01 million/year × 9 = ~US$0.09 million)

• Total Costs: US$168M + US$80M + US$5.06M + US$0.09M = US$253.15M

• Profit: US$253.2M – US$253.15M = US$0.05 million

• Base Case (3% Pink Diamonds, 2.11M Carats):

• Revenue: US$371.9 million

• OPEX: US$168 million

• CAPEX: US$80 million

• Royalties: US$7.44 million

• Taxes: ~US$0.09 million (same as base)

• Total Costs: US$168M + US$80M + US$7.44M + US$0.09M = US$255.53M

• Profit: US$371.9M – US$255.53M = US$116.37 million

• Double Case (Standard, 4.22M Carats):

• Revenue: US$506.4 million

• OPEX: US$168 million

• CAPEX: US$90 million

• Royalties: US$10.13 million

• Taxes: US$5.41 million/year × 9 = US$48.69 million

• Total Costs: US$168M + US$90M + US$10.13M + US$48.69M = US$316.82M

• Profit: US$506.4M – US$316.82M = US$189.58 million

• Double Case (3% Pink Diamonds, 4.22M Carats):

• Revenue: US$743.9 million

• OPEX: US$168 million

• CAPEX: US$90 million

• Royalties: US$14.88 million

• Taxes: ~US$15.41 million/year × 9 = US$138.69 million (adjusted for higher taxable income)

• Total Costs: US$168M + US$90M + US$14.88M + US$138.69M = US$411.57M

• Profit: US$743.9M – US$411.57M = US$332.33 million

• Triple Case (Standard, 6.33M Carats):

• Revenue: US$759.6 million

• OPEX: US$168 million

• CAPEX: US$100 million

• Royalties: US$15.19 million

• Taxes: US$10.81 million/year × 9 = US$97.29 million

• Total Costs: US$168M + US$100M + US$15.19M + US$97.29M = US$380.48M

• Profit: US$759.6M – US$380.48M = US$379.12 million

• Triple Case (3% Pink Diamonds, 6.33M Carats):

• Revenue: US$1,115.8 million

• OPEX: US$168 million

• CAPEX: US$100 million

• Royalties: US$22.32 million

• Taxes: ~US$25.41 million/year × 9 = US$228.69 million (adjusted for higher

A Dram for the Proff and all you longtime holders tonight 🥃

The rarity of pink diamond deposits makes Lahtojoki a prime acquisition target for majors like Rio Tinto or De Beers. Comparable deals (e.g., Lucara Diamond’s partnerships) suggest a takeover could value KDR at a multiple of its current market cap.

If Lahtojoki produces 100,000 carats of Fancy Vivid Pink diamonds at $1 million per carat, this alone could generate $100 billion, dwarfing KDR’s current market cap

Lower End:

Faint or Very Light Pink diamonds start at $10,000–$100,000 per carat for smaller stones (5 carats, can exceed $1–$5 million per carat.

Annual Appreciation:

Prices have risen 10–20% annually, with Fancy Light Pink diamonds increasing 15% per year over the last decade. Post-Argyle closure, prices are projected to continue rising due to dwindling supply.

Lab-Grown vs. Natural:

Lab-grown pink diamonds are significantly cheaper (e.g., a 0.62-carat lab-grown pink costs

While clarity impacts value, it is less significant for pink diamonds than for colorless ones, as the vivid color can mask inclusions.

Stones with VVS1 or Internally Flawless clarity fetch premiums, but even SI1 or I2 clarity stones can command high prices if the color is exceptional.

The Eternal Pink (10.57 carats, Fancy Vivid Purplish Pink, Internally Flawless) sold for $34.8 million in 2023 (~$3.3 million per carat).

A 7-carat Fancy Intense Purplish Pink sold for $4.3 million (~$614,000 per carat) in 2024.

The Williamson Pink Star (11.15 carats) sold for $57.7 million in 2022, or ~$5.1 million per carat, setting a record for price per carat.

Lahtojoki Relevance:

KDR’s deposit is estimated at 2+ million carats, with potential for larger stones, which could yield significant value if high-quality pink diamonds are extracted.

Fancy Light Pink:

$10,000–$220,000 per carat, depending on quality and market conditions. For example, Fancy Light Pink diamonds have risen from $10,000 per carat in 1979 to $220,000 by 2014, a 22-fold increase.

Fancy Intense Pink:

$100,000–$700,000 per carat, with high-quality stones reaching up to $1 million.

Fancy Vivid Pink:

$600,000–$2 million+ per carat, with exceptional stones exceeding $3 million per carat at auction. For instance, the Pink Star (59.6 carats, Fancy Vivid Pink) sold for $71.2 million in 2017, equating to ~$1.2 million per carat

KDR’s ownership of a deposit with high-quality colored diamonds, particularly pinks, positions it as a unique player in the diamond market.

This rarity and premium pricing potential significantly enhance the project’s economic value, likely exceeding the 2017 PEA estimates, and increase KDR’s market value through higher revenue projections, takeover appeal, and investor enthusiasm.

As KDR advances Lahtojoki, further delineation of colored diamond content could act as a major catalyst for share price growth and overall company valuation.

The unique colored diamond component makes Lahtojoki a standout asset, increasing KDR’s appeal to larger mining companies seeking rare, high-margin resources. This could lead to acquisition offers at a premium, further driving market value.

Comparable deals in the diamond sector (e.g., Lucara Diamond’s acquisitions or partnerships) show that colored diamond assets often attract significant premiums, supporting a bullish outlook for KDR.

KDR’s market value is influenced by the perceived value of its assets. The Lahtojoki deposit’s 2+ million carats, combined with the colored diamond premium, suggests a resource value that could significantly exceed the PEA’s $211 million estimate, potentially justifying a higher share price.

For example, if even 5% of the deposit’s carats are high-value pink diamonds, this could add tens to hundreds of millions in value, boosting KDR’s market cap (currently modest, given its exploration-stage status) and investor interest.

Colored diamonds, especially pinks, are exceedingly rare, with major sources like Australia’s Argyle mine (closed in 2020) no longer producing. This scarcity drives global demand, positioning Lahtojoki as a unique asset in a niche, high-value market.

KDR’s ability to supply these sought-after gems enhances its attractiveness to investors and potential acquirers, directly supporting a higher market valuation.

Pink diamonds, identified in the Lahtojoki deposit, can command prices up to 20 times higher than standard colorless diamonds. For context, while gem-quality colorless diamonds might fetch $2,000-$10,000 per carat, pink diamonds can range from $100,000 to over $1 million per carat, depending on quality and size.

This premium pricing potential increases the in-situ value of the deposit beyond the $211 million estimated in the 2017 Preliminary Economic Assessment (PEA), which did not account for colored diamonds, thus elevating the project’s revenue potential.

Market Confidence:

The milestone strengthens KDR’s position on AIM, likely boosting share price and investor interest, further supporting company value growth.

Takeover Appeal:

Secured rights and high-value colored diamonds make Lahtojoki a prime target for larger mining firms, potentially driving acquisition interest and increasing KDR’s valuation.

Advancement to Next Stage:

With the concession certificate, KDR can now plan and execute further development (e.g., feasibility studies, mine planning), moving closer to production and increasing project value.

Strong Economic Metrics:

The 2017 Preliminary Economic Assessment indicates a 9-year mine life, 55% IRR, US$39.1M NPV (8% discount), and payback within two years, signaling robust profitability and attractiveness to investors or acquirers.

High-Value Asset:

The Lahtojoki deposit contains 2+ million carats of recoverable diamonds, valued at US$211 million in-situ, including high-demand pink diamonds that can fetch up to 20x the price of standard diamonds, boosting potential revenue.