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Gold/Mining/Energy : Gold and Silver Mining Stocks

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To: Claude Cormier who wrote (1710)	7/24/2001 10:08:27 AM
From: Stephen O	Read Replies (1) of 4051

Black Hawk's call options expire in early 2003. Most of them are at $270 and they comprise about 3/5 of their production. At $270 an ounce I expect them to earn about 3.5c Cdn and have a cash flow of 6.5c Cdn in 2002. At $350 gold in 2002 they should earn 6.5c Cdn and have cash flow of 9c Cdn. That is not a bad hedge, it doesn't go out too far. At 15c Cdn the shares are a bargain. At $350 gold in 2003 with no hedging they should earn 10.5c Cdn and generate cash of 13c Cdn per share. Current working capital is about 4.4c Cdn per share.

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