SOUTH AFRICAN MINING Message Board

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Gold/Mining/Energy : SOUTH AFRICAN MINING

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To: POLARBEAR who wrote (205)	9/19/1998 11:46:00 PM
From: baystock	of 472

PB, that is a good spreadsheet you came up with. Here is some more food for thought regarding the leverage that is present in RANGY. Assuming that over the next couple of years the POG recovers back to $350/oz range and as a result their various mining assets double in value between now and 2001 when the $48 million bond debt is due. Using the numbers from the low case: RANGY's total asset value => $45.5 million Add back the debt => $54 million Add in value of 11m shares RR=>$55 million Total asset value => $154.5 million Now looking 2 years ahead when POG is $350+/oz: Total asset value => $309 million (ie. 2x increase) Subtract the debt => - $ 54 million Net asset value => $255 million Assuming there will be around 50 million shares that works out to $5 per share. At the current price of 63 cents, RANGY's risk/reward potential IMO is 1 to 10. Ram

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