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Gold/Mining/Energy : ibi corporation

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To: Gold who wrote (90)	6/5/1997 9:47:00 AM
From: Sergio Ferreira	of 129

Gold and all, Good informative E-mail from Wade. It cleared a few more things up. I guess I wasn't too far off with my numbers for the Timber. If they end up with a similar royalty deal as with Placer we'll be laughing all the way to the bank! It reminds one of the old Dire Straits song "Money for Nothing". The great thing about these royalty type deals is that you don't have to put up any money yourself - which means less share dilution (which lord knows IBIC doesn't need anymore of). Not to mention the fact that venture capital money these days for juniors is basically non-existent. Let's get back to the numbers....first I should point out that there is NO deal in place as of yet and NO guarantee that there will be..that being said... Let's take a closer look at the earnings potential if they do finalize a deal. A dollar per share earnings doesn't seem too unreasonble. Now if we take a look a what you would pay for a company with a dollar per share earnings on the TSE. The average P/E (Price per Share/Earning per Share) for all companies on the TSE is around 23. Exploration/Juniors usually trade at P/E's much higher then the average as they have little to no earning to speak of. If we take a very conservative P/E of 10 (Good luck finding a company these days at this P/E!) As a minimum a company with earning of 1 dollar should be trading at 10 dollars per share. This again is all speculation and there is always the risk that someone is taking all for a major ride here (Hey after Bre-x anythings possible!!). So as always never invest more money then you can afford to lose. But with this one you got to like to upside as compared to the downside ...and with the recent addition of Turner et al... I think us shareholders might have ourselves a little winner here! Here's hoping! Sergio

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