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Gold/Mining/Energy : EET Etruscan Enterprises T

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To: JR. who wrote (149)	9/11/2003 1:51:18 PM
From: Salt'n'Peppa	Read Replies (1) of 281

Youga value? Back of envelope calculation: EET has 50 million shares outstanding. Youga has a minimum 1 million oz as stated by Ashanti (economics likely run at $300/oz or less). 90% to EET at a conservative 90% recovery (they say 93% is feasible) = 810,000 oz recoverable over the life of the mine. Let's assume a ridiculously high production cost of $225/oz (it will likely be under $200 as hinted at by GM in the NR) and a gold sale price of $350/oz. Even at these outrageously conservative numbers, this works out to just over US$100 million (CDN$140 million), which is $2.82/share. It will more reasonably come in at a production cost of $200/oz and a gold price of $370 (given that JP Morgan has just upped their 3-year gold average to $362). This would value the mine to EET at 810,000 x ($370-$200) = US$138 million, or CDN $193 million. That's $3.85/share. ...and that is just for this one mine! Never mind Samira Hill. Never mind all of those sparkly diamonds at Tirisano. Never mind the advanced Mali gold play. Never mind the several other high quality gold plays. Never mind that gold will likely go over $400/oz and EET can hedge forward. What the heck are we doing trading at $1.75? S&P

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