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Gold/Mining/Energy : North American Palladium(AMEX:PAL)- PGM Producer

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To: Elizabeth Andrews who wrote (505)3/4/2000 6:46:00 PM
From: Sleeper  Read Replies (2) of 976
 
Elizabeth, your not getting any older than me. I couldn't read the site map either! Try borrowing some young eyes and let me know what you find out.

As far as the calculations, here's how I figured the gross revenues:

Current production:
60000 oz. Pd per year at US $600/oz.= US $36m per year, or approximately US $ 9m/quarter

Expected production following proposed mine expansion:
250000 oz Pd per year at US $ 600/oz.= US $150m per year or approximately US $38m/quarter

If the total indebtedness is US $200m (80 to Kaiser Francis, 125 for mine expansion) then the interest payments @10% would be US $20m per year, or roughly 13% of gross post expansion revenues. I do not know the terms of either note, so the length of the payback would effect these calculations, but I feel certain the Kaiser Francis note at least would be on "sweetheart" terms.

Sleeper
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