Re:Milly bashing againAnother post by Rocksolid on LBE:
https://www.stockhouse.ca/bullboards/viewmessage.asp?no=16629117&t=0&all=0&TableID=0
As posted by LBE cheerleader Millwright..too funny
You got that right, tiny tonyg - What a Report
The report is almost as fascinating as the reaction of the cheerleaders. tinytonyg, says its based on $3 Ni - I guess that's good, but in effect its based at $14 Ni, discounted at 80% for everything the CFA isn't sure of between the Ni in the ground and the the time cash is realized. Its a nice way of coming up with an answer when you've got so many unknowns. For the record, the professional that did the last 43-101 for FNI used a $8.71 Ni price versus this chap's $14.
And rocksolid has to up his estimate share value, based on this new information, from $30 to $60+ [that's quite a report alright]
And allbusiness is going to have to rework his numbers, too - this chap comes in with a $1 billion value for all the Langmuir properties, Abie figured $2 billion - not surprising considering Abie's math - likely just a couple of rounding or decimal errors, or something like that.
Another interesting note is that this chap figures that if the estimate was doubled, ISM could be a take-over target. I guess that's setting up the next report - should be able to work the numbers to double this for next time - they worked a triple this time on the bit of drilling that has been done in ten months. That was another cute little bit of information - multiple drills have been at work - that's a number somewhere between two and infinity - two, I believe.
But not to be completely negative, there were some very accurate portrayals in the report.
The most important: "The calculations below ARE NOT NI 43-101 compliant and should not be used as or confused with terminology reserved for inferred or actual resources and reserves. The approximation of current value below is not intended to be representative of actual value that would otherwise be calculated using NI 43-101 compliant information and methodology."
[I think that's added in case Xstrata confuses this with a 43-101 type report, and makes a premature take-over move]
and
"Investors should not rely on the information given by MiningStockReport.com or Overcard Networks LLC to make investment decisions."
But what's not to admire about the report, it was prepared by an independent analyst:
"James P.W. Darcel, CFA is an independent financial analyst and has worked in the investment industry since 1986 for the TSX predecessor, investment counsel organizations, an insurance company, and a hedge fund."
- Who better to take company supplied information, interpret the geological and mining implications, and turn it into a $1 billion dollar valuation, than someone that worked in the investment industry [TSX predecessor? would that be the VSE?], worked for investment counselling organizations [what are they/] and then the real clinchers - worked for an insurance company and a hedge fund. Now how could you beat that? Well maybe working in a mining company, or being a geologist or a mining engineer - but what the hell - even if he was a little off on tonnage - that was made up for by his stated belief that there's going to be more found soon, anyhow!
All round it was quite a report - sweaty shillman may be able to make a few miles with this one - but it won't be as easy as the spring run-up, and there's risk involved. What if some real mining analyst got hold of this and it leaked out what a farce it was?