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Strategies & Market Trends : Ride the Tiger with CD

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To: Goose94 who wrote (136212)	11/12/2008 12:35:41 PM
From: Veteran98	of 313061

RE: BIM careful here as Danny issued an update this morning BIM Followup - Financials Released Tuesday Night Baffinland Iron Mines (BIM.T $0.37) www.baffinland.com They couldn't have issued these Tuesday morning "before" my report ! Net Cash & Investments in the range of $36 million ($0.25/share) Financials were released tonight for BIM and I almost fainted ! Net cash the end of the last quarter was in the range of $120 million - to the end of September it is just under $40 million In that three month window they managed to burn through almost $80 million in bulk sampling, metallurgical test work, environmental baseline studies and various other work they needed to complete prior to winter and to get their bulk samples ready and shipped to Europe. But $80 Million ??!! Holy %$#@ They have capitalized these costs as Mining Interests on the balance sheet and their assets less liabilities is about $200 million or $1.35/share but it eliminates the great leverage a person was looking for with respect to that huge cash position based upon last quarter financials. The stock now moves from grossly below cash value to slightly above cash value. Fortunately the underlying value of this iron ore deposit could be enormous but now we may be stuck in the $0.30's until this market gets a good bear market rally or we see feedback from the iron producers (in Europe) that will soon be burning these bulk samples (which recently arrived at port). As frustrating as this was to see, we also have to keep in mind the potential value of this deposit. In the spring of 2008 Baffin managed to raise $193 million at $3.65/share - obviously this group of investors saw the value in what they had - so our risks in the $0.30's only 7 months later shouldn't be too bad. I hope this Iron Ore burns as well as their cash did !!

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