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Gold/Mining/Energy : Precious and Base Metal Investing

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To: Elizabeth Andrews who wrote (763)12/9/2001 8:30:26 AM
From: tyc:>  Read Replies (2) of 39344
 
Or to Russ Winter

In a news report on Friday, Inmet Mining said it was taking $15,000,000 into profits in the fourth quarter by the reduction of the amount it had carried on its balance sheet as a liability for reclamation expenses.

What does this mean to the future free cash flow of IMN ?

It went on to explain that future water treatment charges were expected to be $1,200,000 per annum, and discounted @ 7%, the book value of this liability will be $17,000,000.

If in the past, the amount expected had a discounted value of $32,000,000, my inference is that future FREE CASH FLOW will be a million dollars a year higher than previously expected.

Is there any other interpretation ?

biz.yahoo.com
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