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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (1651)	8/11/1997 6:23:00 AM
From: Jeff Maresh	of 78822

Hi Paul - I am accumulating EN long-term. I plan to hold for 5-10 years. I doubled my position after the price dropped due to the drop in gold prices. Here are the biggest reasons I like the stock: 1. Central banks continue to dump gold but can only do this for so long. This is keeping gold prices down but there continues to be pretty significant disparity between gold mined and demand. 2. EN decided to contract out development of the Ken Snyder mine in Nevada which is one of the richest deposits in the world. Usually they sell the stake to one of the big mining companies and get a royalty. When it comes on line next year, mining costs are estimated to be around $80/oz. Their other mines average probably in the $150-$200 range which is still very low. Overall, some gold mines (particular S. African) have production costs in excess of $300/oz. When this mine starts producing, EPS is estimated to increase significantly (like a factor of 5-10!). 3. The company remains undiscovered since it's only traded in Toronto. There is talk it might be traded on the NYSE soon. Regards Jeff

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