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Gold/Mining/Energy : Gold and Silver Mining Stocks

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To: Brumell who wrote (1846)	8/14/2001 11:26:43 AM
From: russwinter	Read Replies (1) of 4051

It about time to seriously throw Moydow (MOY) into the hopper. 26.9 million out @ 36= US 6.3 million market cap. There is working cap of US 2.4 million, leaving an enterprise value of only US 3.9 million. The story is MOY's advanced (mining license issued) deposit in Ghana with NDY (50%) called Ntotoroso, which in turn is located adjacent to NDY fully owned and large Yamfo-Sewfi project. Also note analyst reports by Van Doorn and Brent Cook. moydow.com My bet here is that the feasibility study released earlier this year (and responsible for killing the stock) is unduly conservative and ignores a considerable part of the story. - Reserves were put at 1.1 million (550K for Moy's share) and at a cash cost of about $180 (uneconomical at 270 POG, the basis for the study). - There is at least another 600K (300K-MOY)in measured and indicated resources not incorporated into the study. In addition there are some excellent high grade cores drilled below the proposed pit that haven't been counted at all (makes you wonder why they even did the feasibility study?) This high grade is open, with the better grades at depth. There is still considerable upside potential in other zones. - Sensitivity to POG increases is extremely high: $1 adds one million cash flow and will kick in rapid additions of reserves and resources. Great leverage, one of the best 270 to 300 plays in the market, especially as understated reserves and resources/ EV are at a mere $3-$4 an ounce. - Ntotoroso is a key component of one of NDY's most important development projects. Takeover odds are good. I think what's happened here is that the project requires a few brain cells to evaluate correctly and the study shows costs as high and misleading. In this market that has equated to a sell ticket. But when you kick the tires here, a great bargain has emerged IMHO.

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