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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: .Trev who wrote (23483)	7/23/1999 2:09:00 PM
From: Letmebe Frank	Read Replies (2) \| Respond to of 26850

Trev and remaining cultists: I pulled this interesting analysis off of stockwatch. stockwatch.com Thought we could use something to spur some discussion on SI. (Thanks for this WillP) Also, I wonder how may Resource Indicator followers sold at the stop loss? Could turn out to be an astute move... time will tell. Well 1 post this week for me... off to Lake Huron this time! Hope to see the "shakedown" over and WSP at 4+ buckaroos when I get back! WillP answers: Why would a self respecing multinational "diamond" company want to take over Winspear. What does Winspear have, that other, cheaper, outfits do not? WINSPEAR RESOURCES In ground resource: 20 million tonnes x 200$ US per tonne x 0.7 = $2.8-billion US / 50-million shares = $56 US per share. Excess over share price: 24x. Any with more? MOUNTAIN PROVINCE MINING In ground resource: 35 million tonnes x $115 US per tonne x 0.36 = $1.4-billion / 45-million shares = $32 US per share. Excess over share price: 12x. ABER RESOURCES LTD. In ground resource 37 million tonnes x $200 US per tonne x 0.4 = $3.0-billion Add approximate share of Snap Lake, of $1-billion = $4.0 billion / 56-million shares = $71 US per share. Excess over share price: 8x. DIAMET MINERALS LTD. In ground resource 70 million tonnes x $110 US per tonne x 0.29 = $2.2-billion / 33-million shares = $66 US per share. Excess over share price: 4x. It's a crude way of looking at things, but then it's a "rough" business. If someone wants diamonds...the higher the excess multiple, the better deal for your money, no? TAHERA CORP. In ground resource: 5-million tonnes (est hi grade) x $80 US (est. hi grade) x 1.00 = $400-million US / 200-million shares = $2.00 US per share. Excess over share price: 13x. It's a decent value, but few diamonds. Also depends on my estimates of high grade zones, which are possibly optimistic. SOUTHERNERA RESOURCES LTD Estimated resources: 8 million tonnes x $100 US per tonne x 0.9 = $720-million US / 30-million shares = $24 US per share. Excess over share price: 9x. That one includes Leopard, M1, and the other, less explored Klipspringer bodies. Nothing else, as there are no indications of potential. Will Author: WillP -- Date:1999-07-22 12:58:12 Subject: Stop Losses " Anyone following his Sudhirness will now be stopped out of WSP. " Always a risky move...putting stop losses on something that isn't a "speculative" stock. I think it will take some time to have that realization sink in. ...or is there a second opinion that's more persuasive? Not from me. I'm not a big fan of the "DeBeers is going to buy", scenario.