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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies.
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To: Karl Zetmeir who wrote (80)7/30/1996 12:33:00 PM
From: Gregory Chen   of 28369
 
Any idea what the government tax rate will be? Your calculation
did not include the cost of building a mine which is estimated
around $900M US. I guess that is why BXM want to sell 25% of
its Busang stake to just cover the initial capital spending of building a mine. By selling 25% of the stake, it will not spend a
penny or build up a huge debt before the production starts.

Gross Margin: $225/oz
Third party share:(35%) -78.75 (10% Gov, 25% partner)
Net $146.25/oz
Mine Production: 2.5M oz
Net Oper. Prof: 365.6M
No. Shares out: 220M
Per Share: 1.66
P/E Multiple: 20

Value: 33.2

Notice that 25% sale of stake probably covers mine building cost and more. But again, we haven't count in Government tax yet.
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