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Gold/Mining/Energy : Trump's 12 Diamond Picks, Discussions Limited -- Ignore unavailable to you. Want to Upgrade?

To: maintenance who wrote (1932)	1/27/1999 7:57:00 PM
From: Cohiba	Read Replies (2) \| Respond to of 2251

Hi Maintenance, Thanks for the calculations. They seem to confirm my point that the stock will trade at a premium to the NPV value. In Diamet case according to your figures (NPV 11.20) the stock is presently trading at a premium of about 57% (Can $16.95). This price is near the low of the year, the high being around Can $25 (premium would then be 120%). If I use your figures on WSP for a 10 million tons resource to be mined over 15 years at Can$ 400/t the stock would trade at around Can $11.25 using a 57 % premium and Can$15.85 with a 120% premium. Now, I believe it would be fair to discount the premium because WSP is still in the exploration stage. A 25% discount is suggested in the book I referred to in preceding posts. That would still give us a price between Can $8.45 to $Can 11.85. That is if we are using a 10 million tons resource only and I am still very confident that it will be at least double that. That only leaves us with the value per ton that may change in the next six months. Regards, Cohiba