Gold and Silver Juniors, Mid-tiers and Producers Message Board

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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: jennifersilversun who wrote (49337)	9/20/2007 4:47:52 PM
From: Amark$p	of 78419

$5 within 6 months is way too optimistic IMO... 6 months out just gets us to 3/31/08, and EPM will not be reporting earnings until May 08. Even then, from reading the Tech Report, the first 3 months production is minimal as it takes a while to process the gold and copper after grinding/leaching (apparently one month for gold and 3 months for the copper). See page 17.40 of the tech report. Thus, assuming start up in December, then first month's copper sales do not take place until March 08. Initial gold sales are projected at only 8,556 ounces for first 2 months. Production really ramps up in month 4 as copper comes on line. Really significant cash flow/earnings per share will likely be in 3Q08 (but 2Q08 should be very good assuming no mine start up problems and no extra expenses in getting mine operational). Maybe $2 by year end if we are lucky. Maybe $5 after 3Q08 earnings released in Nov 08 and EPM hits its production numbers and country risk viewed as reasonable. That said, I would not be surprised at all to see EPM acquired for $3+ per share within the next 6 months.

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