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Cline Mining Corporation T.CMK



TSX:CMK - Post by User

Comment by estebancaballoon Apr 25, 2012 9:47pm
180 Views
Post# 19836948

RE: RE: TSX

RE: RE: TSX

If CMK cannot turn a profit then it would seem logical that the mine would be sold to someone who could. The issue then becomes the price at which CMK could find a buyer. This would be a function of the bigger economic story (increase in steel production in India, China, etc.) and the consequent value of the asset at the time of sale. The argument that CMK is doomed to an ever decreasing spiral in SP because current management will not be able to turn a profit and/or find a buyer seems overly pessimistic and unrealistic. This would only make sense if it were perceived that the mine could not be made to run profitably even under the best of scenarios.

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