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Gold/Mining/Energy : William Resources - WIM-TSE
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To: Robert Dirks who wrote (1130)10/13/1998 9:52:00 PM
From: M. Merriam  Read Replies (2) of 1326
 
Robert, you write that there are only 13.5 million shares outstanding. That figure seems a little low. The most recent Midland Walwyn research report posted on the WIM site states:

"With our estimate of 215 million shares fully-diluted (reflecting 73 million shares currently outstanding, a potential issue of 20 million shares in lieu of interest in 1999, and a potential issue of 122 million shares in 2000 to redeem the debentures)"

The shares outstanding will be much higher if the price does not recover before these issues take place (as the number issued will be inversely related to the share price).

The fully diluted market capitalization is much higher than you suggest. Using Walwyn's estimates for dilution, it's around $26 million. Personally, I feel that Walwyn's dilution factor is too low, so the implied market cap could be much higher than that.

You write:

"Producing @ 100,000 ozs."

What will it be in a couple of years, after all those mines close, and the company has reduced its equity position in the one mine which might remain?

I agree with what you say about the leverage to the price of gold, which is why I bought WIM in the first place; however, I did lighten up on my position today after reading that release.

Mike
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