Peruvian Gold Ltd. PVO Message Board

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Gold/Mining/Energy : Peruvian Gold Ltd. PVO

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To: Rolly who wrote (486)	3/27/1998 3:09:00 PM
From: Robert Dydo	Read Replies (2) of 892

Hi everybody. I wasn't able to monitor the trading but my first pick at it was at .76. As I spoke before my target of $2 was 50% discount of values of properties hold by GBU. I disagree with $50.00 per oz. as a standard formula and we have study available showing capital and non-productive cost for production at exact figure. I also said that Peruvian which is a acquisitor is paying value of the assets which in this market are being largely discounted. The market discount of the value of properties is also based on character of those resources which are inferred and not in proven and probable category. The money PVO has, I doubt, would put those properties to production judging by their current status. More money will be needed either in form of debt or further dilution. The trend at the moment is artificially based on GBU share value of $1.00. This may take PVO to 0.60 level. I think PVO is overpaying in those market conditions for assets of GBU. Unless there is more increase of the resource and some window of opportunity to start production on small scale which will provide a cash flow, day after a takeover we are in worse situation than day before. I had a good opinion about their money management, but this deal is a fundamental upset, which will cost the current shareholders money. I was hoping that they could get more for their cash. Regards Robert

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