Hello Rosehill

If I were in Dave's shoes I would not even try to get more cash in the treasury. One way to get the cash is to sell the chromite holdings for say $100M for argument's sake. So PRB would end up with a bloated treasury, say something like $100 + 32/current cash = $132M cash. That would present a potential predator a golden opportunity to strike.

Value of Borden? Current Market Cap = $150M - 132 = $18M for something like 10M ozAu at Borden? $18/oz = No way for me.

Play out the scenario a bit more assuming AEM as the predator (the current big fish in this pond). Well, the stike will start with exercising the wts @ $2.10/wt (assuming a full wt) x some 7.5M = $15.75M (make it $15M). Now, PRB would have an idigestion problem with 132 + 15 = $147M in the tummy. This is translated in $150 (assume the Cap is the same) - 147= $3M for 10MozAu = $3/oz = definitely a NO, NO, NO!

Somebody should check my math (and for any flaw in the argument), since the results from selling the chromite to make more cash just look terrible.

Even if the Mkt Cap is doubled due to the prospect of a TO (150 x 2 =300) the value of Borden is still 300-147 = 153M for 10Mz (assuming no increase in the resources). $15/oz (assuming no change in the POG). Still, No way.

My conclusion: Leave the chromite alone, why work for the other guy. Just let it sit there and use it as a bargaining chip for at least $100M.

goldhunter