GEOMAQUE Message Board - Msg: 12577605

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Gold/Mining/Energy : GEOMAQUE

GEO 15.22

+4.4%

Nov 14 4:00 PM EST

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To: jpthoma1 who wrote (107)	1/14/2000 4:50:00 PM
From: Claude Cormier	Read Replies (1) of 260

<<Is it oversold or am I missing something?>> Well the market cap is only C$23M. And they have 1.6 millions ounces in resources of which more than 700,000 are mineable at US$280 gold. At the moment they are breaking even, but their Vueltas Del Rio mine in Honduras is coming up on stream in April at a rate of 60,000 ounces per year. These ounces will cost US$169 per ounce to produce. The company expect a cash flow of minimum US$100 per ounce. On an annual basis that is US$6M in additionla cash flows or $C9 millions. In 2001 they will be producing 130,000 ounces at an average costs of US$213.... if all goes as expected this should generate a cash flow of $C13 millions at gold US$280... I'let you do the calculations if gold moves to say US$325. I think that you can call it oversold at a market cap of $C23M or 1.7 times 2001 cash flows. Of course, gold could go lower...or the company could have unexpected problems at their new mine... but lets be positive.

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