Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : ABER RESOURCES -- Ignore unavailable to you. Want to Upgrade?

To: Bob Fairchild who wrote (868)	12/3/1998 7:06:00 AM
From: Libertarian22	Respond to of 2006

Come one come all! Pre Christmas sale. Diamonds dirt cheap (or is that diamonds in the dirt cheap). Open normal exchange hours. No lines, no waiting!

To: Bob Fairchild who wrote (868)	12/3/1998 9:48:00 AM
From: teevee	Read Replies (2) \| Respond to 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