I would only add two things to this.
1/ I would not be using numbers from what the board said at a general meeting, I would be trying to work out actual cost so far from the cash flow reports.
2/ There is absolutely no point in using a market standard PE ratio, or even comparing PE ratio's from other diamond companies when trying to work out a valuation for LOM. One of the biggest factors that goes into deciding a PE ratio for a mining company is life of mine.
The best way I can think to explain this right now is, if a company was making $100 million per year, for 2 years production then the PE ratio would be extremely low as the company only stands to make $200 million over its life, therefore its market cap would be low. I mean you are not going to have a company that only stands to make $200 million in its life, valued at $1 billion.
However a company that was making $100 million per year for 15 years would have a higher PE ratio and market cap as they would stand to make $1.5 billion over the mine life therefore valuing that company far higher.
As far as the kimberlite goes, well it would definitely add some value to your valuation, but until it is actually found and proven, that value would be negligible.
To be honest, I have no idea what the current mine life for the alluvial's is, so I wont attempt to put a value on the company.
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