My Record & Call – Good Luck Guys
The record of my statements for each component of Cline, can be found on my due diligence blog and they are historically dated, with substantial back up information. That is my record, this is the link and this is what I stand by.
Mine_Prof Due Diligence Portfolio Selections
In regard to the future, my past statements are very clear.
I believe Cline will be bought out before any, very large substantial financing.
Cline may do a small financing in between, this will be for strategic reasons.
I estimate Cline will merge with Cambrian on a 1 for 1 basis.
Cambrian will sell New Elk to Coal International for consolidated ownership.
Cambrian will sell all Cline Canadian coal assets to Western Canadian for consolidated ownership of WTN on a fully diluted basis.
Cambrian will keep and develop Cline Iron project by itself. Cambrian will get a TSE and USA listing by amalgamating with Cline.
I say Cline will finance at approximately $4 per share because that is Cambrian price.
If Cambrian merges with Cline, (1 for1 basis), I am calling a price of above $10 per share in 2011 for the combined company.
The above, is my basis for calling a $4 per share financing. A $4 per share financing is very reasonable, as a forward looking business estimate.
If No Merge with Cambrian
The main shareholder group probably controls 60% of all Cline stock.
They have great connections to big capital. They would be idiots to dilute themselves. Cline could finance, like consolidated Thompson did on its Iron project.
New Elk has a replacement value of $250 million aprox $3 per Cline share.
Cons Thompson, just bought Quito for $150 million, equal to $2 per Cline share.
Lossan has 200 M-tons of coal and Lodgepole has over 150 M-tons. I believe it will go into production, as per my blog.
Cline will not finance cheaply. The facts do not support a cheap financing.
Why Finance at All
Why not merge Cambrian and Cline and get consolidated ownership in Western Canadian and Coal International. Cambrian gets to keep the Iron project so it can grow using Iron cashflow, just like BHP, Vale and RIO.
Cambrian has gone public saying they want to sell Western Canadian. Cline asset base gets Cambrian consolidated ownership of Western Canadian and Coal International and a great Iron project. Plus gold, Uranium, outstanding directors, a TSE and a USA listing.
We are still at step 1. Just wait 10 weeks and see what transpires.
Cline will soon drill its Iron project; it has a 500 million ton potential, at $200 per ton, it has a value over $100 billion, right next to China. We know it has 100 million tons; that alone is worth $20 billion.
I am sure Cambrian would be happy to merge with Cline on a 1 for 1 basis.
I am not pumping. I have submitted great business thinking on how Cline and Cambrian shareholders can get fantastic value by combining both companies. To me this is by far the best way to proceed for all shareholders, of all 4 companies.
Audley Capital controls Cambrian and Western Canadian. Audley will make the call, if they want it, Cline is sold. Just ask yourself, what would you do if you was Ken Bates? The answer is to merge Cline and Cambrian and for Ken to be a top director.
Ken is a M & A legal specialist in mining. That is his life long career expertise. This is what he does. Of course he has something like this under consideration, either now or sometime in the near future.
Even if I am wrong on my Cambrian call, I will still get $4 per share payout at the low end.
I stand by all the facts that I have posted in my Due Diligence Blog. This is the link.
Mine_Prof Due Diligence Portfolio Selections