Bema(Bgo) and Arizona Star Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Bema(Bgo) and Arizona Star

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: virginijus poshkus who wrote (7815)	10/16/1997 7:33:00 PM
From: Wayne	of 10482

Analyst Report post pre-feasibilty study from RBC Dominion Securities. Available from them or the Bema Office. The following is quoted "Implication The MRDI pre-feasibility study was intended to be a significant test for Cerro Casale. The study brought together a more intense evaluation of the grade and tonnage of the mineralization with conceptual pit designs and operational parameters. The following tables outline some of the key assumptions and conclusions of the MRDI report MRDI Estimated reserves by deposit type Oxide cap 56 million tonnes - .84 grams/tonne gold Sulphide Porphyry 791 million tonnes - .71 grams/tonne gold and .29% copper Mining assumptions mill throughput 150,00 tonnes per day(tpd) strip ratio 2.6 to 1 (waste to ore) Mine life 16 years The assumptions and findings are quite different from the previously released information that had indicated a significantly larger resource of gold and copper. However, this reflects the more realistic constraints of mining, mill recoveries and smelter payments and is not due to an overstatement of potential. Our analysis of Cerro Casale deposit shows very similiar reults to the MRDI study but uses an escalating gold price of $336 for 1998 and increases at approximately 3% per annum. We found that an IRR of 11% to 14% may be reasonably expected and the discounted (@10%) Net Present(pre-tax) Value of cash flow could be from $430 million to $510 million. With Bema owning 49% interest in the deposit we believe that the total discounted cash flow attributable to Bema may be currently about $235 million or $2.20 per share." End of Quote The next part of the report is the valuation tables which for my typing skills present too great a challenge The following is quoted "Conclusion: The MRDI study gives credence to the fact that Cerro Casale has the potential for becoming a large viable mine. We believe that Bema's 49% interest in the deposit may be seen as contributing increasing value to the company's shares as the start up of production begins. Therefore we are re-iterating our buy recommendation with our one year target at C$14.00." End of quote The date is Oct 10.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next