La Mancha Resources Inc LACHF

Book Value

[RedHorizon]

My calculation of LMA's book value as of 9/30/08 is:

$97.38M/142M shares = 68.5 cents Canadian.  This is more than a double from here (30 cents as of this writing).

For a cash flow positive gold miner with 3 operating mines to be trading at less than 50% of book value is a tremendous value.  It is also important to note that they have $9 million in cash and do not need additional financing at this point in time.  Disclosure:  I own this stock and I am glad that I do.

Best wishes to all.

[Nergy]

Good point Red Horizon and looking at the book value per share is probably the most unfavourable valuation method for La Mancha. A NPV, P/CF or Oz/MCAP would all be more favourable for La Mancha in comparison with all other producing gold companies I’m familiar with.  Let’s use the most solid major, Kinross Gold corp. as a comparison company. Kinross trades currently at 21.14

[RedHorizon]

NERGY:I agree that looking at price to book is the least favorable to LMA.  That's what I think is so interesting, that by any measure we can come up with LMA will be severely undervalued.  Here's another comparison which is telling.Both LMA and Western Goldfields have a cost of production of $500 per ounce.  WGW recently reported better numbers than that but are saying that