Winter in the Great White North Message Board

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Strategies & Market Trends : Winter in the Great White North

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To: marcos who wrote (702)	5/18/2001 3:01:38 PM
From: tyc:>	Read Replies (1) of 8273

The current spike in the price of gold raises an interesting situation for IMN. Several years ago, it arranged to sell its Troilus gold mine to Homestake for C$160M. The price of gold fell, and Homestake backed out of the deal. Inmet immediately sued for completion. The litigation has been in progress in Vancouver since February this year; and should be completed in a couple of months. It's intriguing because there are still 1,000,000 ounces of gold to be mined in the remaining 6-7 years of mine life. Richard Ross the president recently (Sept 13 presentation) said that with gold at $285, it should generate FREE CASH FLOW of about C$100,000,000. Obviously every $10 increase over $285 would add another $10,000,000 to total free cash flow. So where's the top for gold ? This law-suit might turn out to be a win/win situation for IMN. Incidentally, Mr Market is apparently offering the Troilus mine for free right now as IMN is still trading at its working capital.

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