Cline Mining Corporation T.CMK

Great news...618.9Million Tons M & I

[seanj1]

This  was a good news as expected. It is like cuttimg the number of outstanding shares in half !! Once the coal gets back to higher prices in near futues, then Cline will be back in favour  again. I wouldn't mind some last ditch short attack tomorrow so I can add some more... But I don't think it will happen. SP will move above $1 over next few days if not by  tomorrow..

 

SEAM	MEASURED	INDICATED	MEAS. & IND.	INFERRED
Green	31.9	27.5	59.4	0.1
Loco	14.4	30.0	44.3	26.6
Blue	52.2	38.1	90.3	0.9
BCU	12.8	36.8	49.6	30.0
Red	23.3	10.3	33.6	0.0
Maxwell	72.1	71.7	143.8	17.4
Apache	50.3	56.8	107.1	15.4
Allen	42.8	47.9	90.7	14.1
Totals	299.8	319.1	618.9	104.5

[GUNSS]

According to the Grande Cache website.... Proven & Probable reserves of 137 million tons + (Indicated / Inferred) resources of 346 million tons = 483 million tons Grande Cache was acquired for $1 billion.  Note: A reserves / resources comparison between Cline and Grande Cache is far from apples to apples, but consider the following.....  1) Cline has zero Proven + Probable

[shane117]

If this news barely moves the s/p then nothing will besides confirmed contracts and sales. And that only.

[shane117]

If this news barely moves the s/p then nothing will besides confirmed contracts and sales. And that only.

[GUNSS]

Agreed, shane117, if this doesn't move the share price up, then only sales, revenues and contracts will.

[mr1derful]

GUNNSS.Why would any major producer pay up for CMK when they have not been able to consistently produce therefore you have no idea what their cost structure is like? Nor do we even know what kind of pricing CMK would receive in the market place for their coal.Maybe 70% of the benchmark HCC price. If CMK had reserves that were HCC then I coud see interest. The bottom line is that CMK

[shane117]

15 minutes before open and we are only up .05cts.

[shane117]

.03cts now!

[GUNSS]

You're right, WLT is developing its own brownfield coking coal reserves, so they will not buy Cline. I should forefit my CFA.   You fall into the same trap I keep warning against.  Cline has not produced or sold tons, therefore the likes of a Peabody could not produce or sell tons.  First of all, production is no longer the issue, only the sales contracts.  How much

[mr1derful]

At $300/tonne for HCC any coal producer can be profitable...even CMK. Isn't that what Cline's management was banking on? The issue I have with CMK is on the cost side of their production. They haven't produced anything significant to date so how do you know what their costs per ton are? Costs are a very important variable when determing the value for an entity so until we actually see

[GUNSS]

Good, so we agree that at $300 coking coal any company can be profitable.  But, how many companies can turn a switch and ramp up AN INCREMENTAL 3 million tons within a year or so, (assuming the likes of a Peabody are in charge).  That optionality is valuable.  Peabody has zero tons of coking coal production in the U.S.  Arch, Clould Peak and Alpha would benefit from buying

[GUNSS]

Oh, and you said that WLT will be bought out before Cline?  I don't necessarily disagree.  But, WLT's EV is $ 6 billion, and Cline's is $250 million.  Is WLT worth 24x that of Cline even though Cline has 619 million tons of M&I resources? 

[miner666]

Mr. Egoful, Although I agree this is all speculative at this juncture, that is what investors do, speculate.  Regarding the prospects of a WLT takeover, the market has been calling for this transaction for over a year, and while I agree it is a more likely candidate for an acquisition, an offer at or slightly above the current market price will be deemed as opportunistic at this point in the

[mr1derful]

WLT's Alabama assets produce premium hard coking coal that gets priced at benchmark prices and their costs in the US are targetted to be at $100/ton. Their margins are obviously a hell of a lot higher than Cline could ever expect. Not all reserves are created equal.