Alkane Inc (ALKN): eibbanker, I went and did a simple analy...

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DanHeilman

Re: eibbanker post# 4568

Wednesday, 12/03/2003 12:57:35 AM

Wednesday, December 03, 2003 12:57:35 AM

eibbanker, I went and did a simple analysis on ABER and it's 40% ownership of Diavik Mine;

11.7Mt * $400 Per Ton = $4,680,000,000
minus 1B for cost to build mine
minus 11.7Mt * $51 Cost Per Ton = $3,083,300,000
times 40% ownership = $1,233,320,000
divided by 54,917,000 Outstanding Shares = $22.46 PPS

And they closed today at $37.50

http://www.aber.ca/business/diavik.html

Looks like this formula works for finding a range and it is simple;

Net Value of Mine / Outstanding Shares = PPS

We need to do this on a bunch of existing mines and find out what the range is. I think trying to De Beers is silly, but here is a site with most of the rest on it:

http://www.afdiamonds.com/_diamondMining/diamondProduction.shtml

Please, anybody that wants to join in the PPS Project, just pick a company and find their value of their mine minus costs and how many outstanding shares!!!

Find Diamonds, Make Money