Hey essam I came across a gold company in my travels on the net and I was wondering what some of the experts here thought of it.
13 million shares out currently at 30c. The convertable debentures are trading at $36.00 and where as high as $114
The reasons that William should double in a week or two are: (1) they raised approximately $60 million in the last sixty days-$43 million debt and $17 million equity; (2) market cap of $15 million is less than the value of their hedge position; (3) they are a 200,000 oz per year producer which is fully hedged for all of 1998 @ $370; (4) their market cap per oz of proven and probable reserves is approximately $5 and their market cap per oz of next year's production is about $75--these are by far the lowest I can find anywhere; (5) they have a guaranteed positive cash flow because of their hedge position and the $30 million of revenue from their wholly owned BLM consulting business (6)the stock was driven down to the $ .30 level by fund selling and shorting by investors who bought their convertible debentures and shorted the common. MOST IMPORTANTLY they have a well thought our survival plan should gold drop to the $225 level.
here is the latest news...
Trading Symbol TSE - WIM
Trading Symbol Aust. Exchange - WLM.DA
WILLIAM HITS RECORD GOLD PRODUCTION
TORONTO, ONTARIO; William Resources Inc. ("William") production for the second quarter and first six months of 1997 were both at record levels. Continuing operational improvements at the mines lifted second quarter production to a record 54,416 ounces of gold compared to the first quarter of 47,391 oz. This brings William's first half 1997 production to 101,807 ounces. William's production in the comparable period a year earlier when the company was embarking on its aggressive acquisition program was a mere 10,050oz.
Cash Costs have also shown significant improvements with the second quarter being down to US$278 per oz. produced. The resulting cash cost for the first six months is US$285 per ounce.
PRODUCTION SUMMARY
Production US$
Cash Cost ozs
Second Quarter 1997 April - June 97 54,416 US$278
First Quarter 1997 Jan - Mar 97 47,391 US$292
Previous Quarters Oct- Dec 96 23,801 337
July-Sept 96 16,831 330
Apr-June 96 10,050 410
Jan- Mar 96 0 -
Complete second quarter financial results will be announced by mid-August, 1997. WILLIAM expects to announce net positive cash flow after all expenses including interest expenses.
More then 95% of the Company's 1997 production is hedged at an average of US$374 per ounce, and most of 1998 production is hedged at US$372 oz..
WILLIAM is an intermediate gold mining company listed on The Toronto Stock Exchange and Australian Stock Exchange (symbols TSE: WIM, ASX: WLM) with operations in Europe (Bj”rkdal in Sweden and Pahtavaara in
Finland), the Jacobina Mine in Brazil, and Rustler's Roost and Ballarat in Australia. Bj”rkdal is Europe's largest gold
mine. WILLIAM also provides engineering and contracting services to the international mining industry through the BLM Service Group. In 1997, WILLIAM is scheduled to produce over 225,000 ounces of gold at a cash cost of US$266 per ounce.
Contact:Stan Bharti, President or
George Faught, Vice President, Finance
Telephone: (416) 861-9500Fax: (416) 861-8165
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