CMKM Diamonds Inc (fka CMKX)

[bluediamonds]

What do you think CMKX is really worth? by DrDiamond
« Thread started on: Today at 12:59am »


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I believe most don't believe the potential of CMKX! I would like to put some ideas out there for the consideration of CMKX investors concerning possible basic calculations giving us an idea of what might be generically feasible valuations for our FALC claims and CMKX assets. This post will be consideration #1.

The reasonable facts are enough for serious pink sheet investors to believe in the potential for CMKX. After all this isn’t the NYSE and we are not getting all of the info at this point we would like to have. Most can't or have a hard time believing that something good can actually come their way. I guess like most of us after you get burned enough the tendency is to turn critical and cynical. Let's see if we can put aside the criticism, sarcasm, and look at reasonable amounts with a very low level of speculation. Just a reasonable breakdown of what we know and we can go from there.

Every time some one brings up substantial DD that the value of the company is significantly more than people can imagine they shoot it down and think the individual is a pumper. So loosen up and try and be open minded.

I know the A/S (Authorized Shares) is 800 billion shares. Just because 800 Billion are authorized doesn't mean they have been used.

Retiring of Billions of shares has taken place and the PR's attest to it. Even if none has been retired since Feb 2004 when the O/S was still 37 billion we can add to that the 75 Billion paid to Nevada Minerals bringing a possible O/S to 112 billion. We can only speculate beyond the 112 billion O/S we know of seeing as nothing else was PRed, but the market value of CMKX at .0002 is WAY UNDERVALUED! Many speculate a 779 billion O/S, a 400 billion O/S, etc… but the only actual evidence we have supports a 112 billion O/S. Personally I think Urban owns 60 – 70 billion CMKX shares so we can possibly see 200 billion O/S, but it is just a guess.

Here is the link to Urban’s comments on the DeBeers and CMKM Diamonds comparisons. Just so you see I did not make these comparisons up, but are actually the thoughts of Urban and CMKM Diamonds. Please read the PR below very carefully and see how Urban refers to our claims.
http://questfordiamonds.com/news/topic79.htm

If we just take the Smeaton Property, regardless of the other 1.4 million or 1.9 million acres we have, the Smeaton property is 22,447 acres I believe. If you use the DeBeers valued property of approx. 58,000 acres at 40-80 billion dollars then we could reasonably assume that Carolyn and Smeaton is worth half of that at $20-40 billion. This alone when compared to the 112 billion O/S we know of for sure would make the market value of CMKX worth approx .18 to .36 per share. Even if you move to the possible 800 billion A/S as the O/S you would still be at .025 to .05 market value per share. No hype, no assuming the other 1.4 or 1.9 million acres has anything or any value at all.

On Carolyn and the Smeaton property alone we could reasonably expect to have .025 to .05 cents per share price if we had a 800 billion O/S.
And if there were 400 billion O/S we would be looking at a pps of .05 to .10 on Carolyn and Smeaton alone!
And if there were 200 billion O/S our pps could be at .10 to .20 on Carolyn and Smeaton alone.
Or if even our O/S of 112 billion were correct then our pps could be at .18 to .36 on Carolyn and Smeaton alone.

I don't see how anyone can argue with that! But, I’m sure some will find fault.
Now as a bonus, lets do a VERY CONSERVATIVE CALCULATION!

Debeers acreage is valued at around $700,000 per acre. Lets take one third of that and say CMKX acreage is only worth $230,000 per acre. When you multiply $230,000 per acre times 1,400,000 acres you get $320,000,000,000 (Billion dollars). If we have the 1.9 million acres that Melvin quoted to me over the phone then 1.9 million acres X $230,000 you get $437 Billion.

With our acreage in Smeaton and Carolyn valued equal with Debeers and our additional acreage valued at only 1/3 of that of Debeers we arrive at a low market value of:

Low end value compared to DeBeers:
$20 Billion for Smeaton and Carolyn
$320 Billion for remaining 1.4 million acreage
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$340 Billion low end value –
If 112 Billion as an O/S we are looking at a market value of $3.04 low end
If 200 Billion as an O/S we are looking at a market value of $1.70 low end
If 400 Billion as an O/S we are looking at a market value of $.85 low end
If 800 Billion as an O/S we are looking at a market value of $.425 low end

Low end value compared to DeBeers if 1.9 million acres:
$20 Billion for Smeaton and Carolyn
$437 Billion for remaining 1.9 million acreage at 1/3 value of DeBeers
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$457 Billion low end value –
If 112 Billion as an O/S we are looking at a market value of $4.08 low end
If 200 Billion as an O/S we are looking at a market value of $2.28 low end
If 400 billion as an O/S we are looking at a market value of $1.14 low end
If 800 billion as an O/S we are looking at a market value of $.571 low end

High End
$40 Billion for Smeaton and Carolyn
$644 Billion for 1.4 million acreage at 2/3 value ($460,000) of DeBeers
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$684 Billion high end value –
With 112 Billion O/S we are looking at a market value of $6.10 high end
With 200 Billion O/S we are looking at a market value of $3.42 low end
With 400 Billion O/S we are looking at a market value of $1.71 high end
With 800 Billion O/S we are looking at a market value of $.855 high end

I believe the low side of the tape is more than enough to convince any investor with or without the further calculations of our 1.4 to 1.9 million acres of mineral rights. Smeaton and Carolyn alone could easily bring us to .025 to .05 cents per share.

Add in 1.4 million acres of mineral rights with a very possible “market valuation” reserve of $320 billion dollars on the low end we are looking at $.425 cents as a reasonable market value per share.

Add in 200 billion shares of SGGM (.27 pps); Add in our stake in the UCA Uranium mine in the Athabasca Basin; Add in our American Mine with gold revenues streaming in from Ecuador; Add in 10% lifetime royalties from CIM; Add to that a very possible resolution to the NSS position with a short squeeze or buy-out; share dividends paid out already to investors with more on the way; etc…

I could go on with this area of thought, but I believe the very basic should be able to show that we could very easily have “market valuation” of .40 cents plus even if we had an 800 billion O/S and here we are currently at .0002. Is CMKX a value or bargain at .0002? You tell me.

Currently a $200 investment in CMKX would yield 1,000,000 shares of CMKX. If my low end calculations were only 10% correct and CMKX were only worth .04 per share then the 1,000,000 shares would return $40,000. You can do the math from there based on percentages of accuracy. But for anyone to think that CMKX is justifiably at .0002 and will not reach the pennies needs their head examined in my humble opinion.

I hope this helps give a “basic idea” of what a possible “market value” could do for CMKX’s PPS in one of the worst case scenario’s IMO. I know no mineral reserves unproven can be used for SEC accounting purposes to build asset valuation, but they can be used for "market valuation".

Thanks for reading

These are just my opinions and I ask that you treat them as such.

Dr.D

http://cmkxdiamond.proboards32.com/index.cgi?board=general&action=display&num=1098946753