MIRAMAR MINING (MNG) 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 : MIRAMAR MINING (MNG)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: dwight vickers who wrote (169)	11/21/1997 2:51:00 PM
From: Bucky Katt	Read Replies (1) of 457

From the Miramar web page>>Why should investors BUY MAE? Miramar ended the year with consolidated working capital of $150 million (about $125 million de-consolidated). This amounts to about $2.00/share. MAE's investment in NNO has a market value of about $215 million (54% of $400 million) or about $3.50/share. Note that MAE closed at $4.85/share last Friday! If we assume that MAE would pay 50% tax if it were to dispose of its NNO holding, then the working capital + NNO holding would carry a value of about $3.75/share ($2.00 + 50% of $3.50). This implies that the market values MAE's 100% stake in the Con mine at about $1.10/share. The Con Mine reported year end reserves and resources of 1,955,494 ounces of contained gold. Therefore, the market values the Con at about $US 25/oz! The Con mine is a high cost producer. However, management has informed us that it has hedged about two years of production. As at the beginning of this year, MAE's spot-deferred position was as follows: 146,000 oz at $US 419/oz, 35,000 oz at $US 447/oz, and 15,000 oz at $US 458/oz. MAE remains a BUY. Our target is $11 (based on NNO achieving our target of $10).

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next