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Strategies & Market Trends : Ride the Tiger with CD

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To: Taikun who wrote (60224)	8/30/2006 11:58:32 PM
From: Claude Cormier	of 312917

Taikun, If you double the number of ounces, each companies gets its shares and see his number of ounces double. The best way to compare is on a $ per ounce basisn where market cap is divided by number of ounces. Case A (actual): 1.8M ounces BUF Market Cap (excluding new financing): $US 78.3 Ounces 65%: 1,170,000 Cap per ounc`: US$66.90 MMR Market Cap FD: $US 28.5 Ounces 35%: 630,000 Cap per ounc`: US$49.71 Case B (all hopes allowed): 3.6M ounces BUF Market Cap: $US 78.3 Ounces 65%: 2,234,000 Cap per ounc`: US$33.45 MMR Market Cap: $US 28.5 Ounces 35%: 1,260,000 Cap per ounc`: US$24.80 Conclusion: Relative value remains the same on an increase of ounces. And MMR still cheaper than BUF at 74% of BUF value on a per ounce basis. - Do you think MMR could develop NV project from Mt Kale alone? Well yes.. but they would have to raise cash. Now they have 35% carried to productin and do not have to raise cash for Mt. Kare. - Wont they ultimately need to finance also? Yes. But only for their other project. I think the abve is right. But I reserve the right to be wrong <g>. P.S. I don't own these stocks.

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