Tenke Mining Corp (TNK) Message Board

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Gold/Mining/Energy : Tenke Mining Corp (TNK)

TNK 60.14

+0.6%

Jan 16 9:30 AM EST

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To: Gunnar who wrote (144)	3/12/1998 11:10:00 PM
From: Gofer	Read Replies (2) of 486

Marten Dilution is definitely a major concern, but look at the estimated net margin per tonne of US$64.00, that's US$ 150M or US$ 2.30 ($cda 3.20) per undiluted share. More than the current stock price. TNK keeps 55% or US$ 1.30/undiluted share pre-tax. Even a 50% dilution supports a stock price of US$ 5.00 or 6.00 or so depending on the income taxes. Of course they still have to pay G‚camines US$ 50M soon and US$ 150M by 2003. I think that TNK management will probably try to limit dilution by taking on as much debt as possible. Another concern is that the Mobutu kleptocracy will continue under (or in spite of) Kabila. This could delay the development schedule and hammer the stock. I bought in at too high a price last year, but bought some more recently at a good price. I think it can go to $cda 5.00 (or more from momentum) this year but we need good press from the feasibility study and a positive announcement on financing. P.S. Do you follow Farallon? (TSE FAN) It could move soon, but of course there's a law suit (isn't there always a law suit these days!).

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