Supercharged151
I have shown a number of $3500 of gross asset value in the ground. I admit in one quick post I once over stated this by reading a calculator wrong and I immediately owned up. However that error never appeared in my Due Diligence blog. Hey I am human.
The only numbers I stand by are the ones I give in my 2 Blogs at the bottom.
Surely it must be obvious to all, that $3500 is a jest response to critics. This number has no real indication of share price.
$3500 is a gross number that indicates massive value in the ground. This number has negligible relation to share price. How can anyone think it is related? I have never related this number to share price, because it is virtually impossible to do so.
The first and best way to value a mine company is using Net Present Value per Share. This is what I use, but it is premature to apply to Cline.
Another good way to value Cline; is to use the present market cap of other companies. This is the one I have been using.
For example let’s look at Clines Iron project.
Consolidated Thompson paid $150 for Quito. If Cline has 76 million shares out, this is equal to $1.97 per Cline share. Clines project is better then Quinto. So it is easy to say Cline Iron project is worth a minimum of $2 per share. The Iron value per share in the ground is far greater, but that can not be used to determine share price.
An investor I can quickly say, if I buy Cline for less the $2 per share, I am basically paying market price for the Iron project and I get all the coal assets for free.
I have used Market Cap analysis to value a Cline Cambrian merger and I have shown these numbers in my 2 Blogs and I stand by them numbers. These numbers can be used as a benchmark to estimate a full Cline buyout.
My due diligence blog is an open honest effort to shows how I arrived at my conclusions with all the support evidence. I only started this in April 2008.
Blog Link
Mine_Prof Due Diligence Portfolio Selections
Blog Link
Mine_Prof_Portfolio Serious Money & Lateral Thinking