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Gold/Mining/Energy : ABER RESOURCES
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To: Bob Fairchild who wrote (868)12/3/1998 9:48:00 AM
From: teevee  Read Replies (2) of 2006
 
Hi Bob,
The "rule of thumb" for quick and dirty " fair market price" evaluation of Aber's interest in Diavik is to discount in ground value to 10% (historically, for resource companies with the pre-production "goods", this is about where the market capitalizations settle). So...(133 million carats/48 million shares) x (Cdn$65.00/carat) x (40%interest)x(10%)= CDN$7.20/share This suggests that there is no premium or discount in Aber's current share price.

Assuming Dr. Bob is correct about Winspear's Snap Lake having 48 million tonnes at 1.14 carats per tonne with a value of CDN$500.00/carat...... Abers "fair market price" should also eventually reflect [(48 million tonnes)x(1.14 carats/tonne)/48 million shares]x(Cdn$500/carat)x(32%interest)x(10%)=CDN$18.24/share
As for Winspear, this would be: [(48 million shares)x(1.14 carats/tonne)/48 million shares]x(CDN$500.00/carat)x(68%interest)x(10%)=CDN$38.76/share.

regards,
teevee
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