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Message: Can someone explain me on what grounds is Fnc so high?
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In respond to this question and just to follow-up with what Al mentioned...

As of today's close, the market caps for the main McFauld's players are:

  1. NOT - $763 million
  2. FNC - $81 million
  3. PRB - $30 million
  4. FWR - $68 million
  5. SPQ - $40 million

So, FNC is not all that more expensive than the others (NOT, excluded), and arguably PRB is undervalued given its its property portfolio. Both have properties quite close to NOT's DE1, and FNC is believed to have a significant chunk of anomaly they share with NOT, as well as other anomalies, including one that they share with FWR, I believe.

Location, location, location, and until FWR/SPQ prove-up their anomalies, which are much further away, with the drill bit, they are going to trade at a discount.

To be clear, however, I am not saying they won't hit something. Rather, the market is assigning a higher probability to an FNC hit given the signficant anomaly on their groundtht is in very close prximity to NOT"s DE1 discovery. See my earlier post copied below for more details.

In addition, SPQ do not own their properties 100% as do FNC, PRB, and NOT. They are shared with KWG and UC and I am not sure what the breakdown is (I am sure somebody who has interests in SPQ will pipe in with the details), but needless to say, this split ownership is dilutive to value.

Regards,

B.

DE1 just got a whole lot BIGGER...

Posted by: Bentonstocks on February 28, 2008 11:25AM

...Perhaps. I am looking at latest geophysics http://media3.marketwire.com/docs/Fa...
released with the latest FNC news release, and the first thing that jumped out at me is that that 1-1(NOT DE1), 1-2(NOT), 1-3(FNC), and 1-4(FNC) are situatuated with a 1km oval region and could effectively comprise, and be mined, as a large single deposit of perhaps 40 - 100 million tonnes (if they are mineralized like DE1), which includes NOT's original DE1 along with the adjacent anomalies (2, 3, and 4) ocurring on both NOT's and FNC's ground. Also bear in mind that geophysics only reveal that which closer to surface...

Combine that with the hit on DE2, and whispers of more hits, and it should be clear that the 'picture' of Mc Fauld's Lake has changed dramatically in recent days, and its becoming more an more likely that we have a new major mining camp at Mc Fauld's Lake.

The 'bar' has moved up a few notches, and I think we need to set our sights higher now... A +$30/share market cap is no longer 'pie in the sky'...

**Note: The above are only my opinions based on what I believe are reasonable assumptions/speculations.

Regards,

B.

To add... Re: DE1 just got a whole lot BIGGER...

Posted by: Bentonstocks on February 28, 2008 11:40AM

In response to: DE1 just got a whole lot BI... by Bentonstocks

NOT and FNC probably realized this long ago, which explains why they are working together on the geophysics...

However, for FNC to put themselves in the best bargaining position with any potential suitor(s), they first have to establish and deomnstrate the value of what they have, depsite what the geophyics are indicating. In order for FNC to do that, they have to drill, and I know that will not do anything until they have punched drill holes into their anomalies.

FNC could be a very fun ride in the coming weeks/months... Along with NOT, PRB and others...

Regards,

B.

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