Thomas,
I arrived at similar numbers using numbers from quarterly reports and news releases. The $133/oz. appears to use $0.80/lb. cu.. For 1999 this figure translates into $56,000,000CAN cash flow, from Kemess. Subtract $30,000,000CAN in debt servicing, an additional $6,000,000 in losses from continuing operations and you are left with $20,000,000. Of course we have assumed production and costs at plan. They also have repayments on the power lines, infrastructure, nsr royalties, exploration costs, and Ms. Witte's salary to pay. I can't see how the company will operate at positive eps, or even at a positive cash flow unless gold and/or copper prices go up. 1998 should be really brutal for the company from a cash perspective. Hopefully, for them they can and know to borrow enough to survive 1998. Success is by no means assured.
Sincerely,
Al Cern |
