on 05/26/2004 at 11:20:08, George W Bush wrote: No rational person should believe the 2 trillion dollar figure. The entire GDP of Canada is $934 billion. So are we to believe that the land has the potential to be worth more than the entire Canadian economy?? IMPOSSIBLE!!
RESPONSE: Post by gerbs on 05/26/2004 at 16:22:37
Could be. Minerals and natural resources are that way. Do you think that the oil reserves of Saudia Arabia must conform to some percent calculation if their GDP. No. GDP is what is PRODUCED, resources are valued based upon what you have in the ground at todays market price. One's valuation has little to do with the other.
Look at Japan, squat in natural resources, one of the largest GDP's in the world. Look at Russia, abundance of natural resources, many, many times their GDP. Heck, just their oil reserves are worth many times their GDP.
So yes, it is possible that the land could be worth more than the Canadian GDP. If the acres have their fair share of diamond bearing pipes, then there is no reason why CMKX's acreage, at about 30X that of DeBeers, couldn't be worth 30X in total dollars. Just because the numbers are huge doesn't necessarily invalidate them.
Think, why are DeBeers 58,000 acres worth $40-$80 billion? That too is a big number, but its out there and seems to be accepted. Yet when the same math is applied to CMKX, they are somehow invalid due to size. If CMKX acres are revealed to have similar potential, then the same math should be applied.
Not that it would be. Mr Market has a funny way of rewarding one company greater than a competitor, but the rationale exists. It's up to the test results to determine the value of the land, its up to the OS and the market to determine the pps. -------------------------------------------------------------
Excellent & intelligent response gerbs! Go CMKX. -------------------------------------------------------------------------------- Re: Was STERLING off? Post by Chrysler300CC on Today at 00:32:21
I just wanted to bring GERBS good point to the fore for our benefit. It is buried on page 5 of Sterlings original post on CMKX company board. Thanks.
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