Hi Mr Metals.
sorry to get back to you so slow, on your quetion of ERAR worth $40.
I took this off their website. What's your comments??
epar.net
[EPAR as a Gold Company]
September 3, 1998
Our latest report — on European American Resources — has been posted today. the company owns property in Nevada, the world's third largest gold-producing region; the stock trades today at $1 and the company has the potential of selling one of its assets at $40 per share. This is an exciting speculation.
Epar's sight is 2 miles south on the same geological find as Homestake's Ruby Hill, .
I got this from there latest 10Q
sec.yahoo.com
HOMESTAKE MINING COMPANY AND SUBSIDIARIES
"Domestic gold production increased slightly to 182,600 ounces during the second quarter of 1998 from 174,600 ounces during the second quarter of 1997. The increase primarily is due to the commencement of production at the new Ruby Hill mine in Nevada, offset by the temporary suspension of mining in the underground operations at the Homestake mine. The Ruby Hill mine, which commenced commercial production effective January 1, 1998, produced 30,400 ounces of gold at a cash cost $123 per ounce during the second quarter of 1998. The mine continues to exceed initial projections due to processing 12% more tons than planned and to a higher gold recovery rate"
123$ C.C. per ounce is some of the cheapest gold in the world. Homestake has (I've heard) only 4 more years of reserves here. They have already expressed an interest in Epar as well as others.
In my opinion it's a waiting game. We have been a little disappointed that it has not happened quick. But I know from past experience they take time.
From what I've heard progress is being made and we should hear some news coming out on a deal with the tailings.
Also a brokerage firm in Texas should start buying, they have had a geologist check the place out for them and there D.D. should be complete. I heard he bought some stock for himself.
The bottom line to me is, They have a lot of gold, this was well documented by the state and several geologist, Old high grade orr mines run throughout the mountain. Homestake's mine rihgt next door with cash cost of $123.00 per ounce makes it worth looking into.With gold at $280 all the big Co.s need to lower their C.C.
It's just a matter of time untill shareholders see some great stock value appreciation.
Here is a caption of what Homestakes is paying at the moment for reserves.
prime-res.com
100% ownership in the Eskay Creek mine
100% ownership in the Snip mineShares Issued76,073,913 common shares with 40,000 shares under option and no convertible shares or warrants outstanding.
38,491,008 or 50.6% wholly owned by Homestake Canada Inc.
37,582,905 or 49.4% publicly held.Stock Exchange ListingsAmerican Stock Exchange
Under the terms of the revised proposal, for each Prime share owned by them, Prime shareholders (other than Homestake) would have the choice of receiving 0.74 of a Homestake common share or 0.74 of a Homestake Canada Inc. ("HCI") exchangeable share.
12 Months
to Dec 31/9712 Months
to Dec 31/9612 Months
to Dec 31/95Gold Production (oz)360,366313,103247,854Silver Production (oz)11,765,90212,054,1619,945,345Total Gold and Gold Equivalent532,947474,106382,610Total Cash Costs per ounce (US$)* $169$174$184
Proven and Probable Reserves end of year
Gold (ounces)2.7 million
Silver (ounces)117.0 million
quote.yahoo.com
Today Oct 14 1998 HM traded at $12.25. .74 of 12.25 = $9.07 9.07* 37582905=340,876,948 for one half of the Co. Or !/2 of gold reserves-1,350,000. 340876948/1350000=$245.5 per ounce.
epar.net
"Management won't make financial projections at this point and until visiting Senior companies tender their offers, which may be in the near future, no projections can be made. We can, however do some simple math on our own. When we multiply 10 million ounces of gold by the low range of current offers for proven resources, we come up with $240 million, or about $20 per share. And that is only the beginning of the value of EPAR stock".
This looks like a very low end given Homestakes current negotiations with Prime. Plus I think they will pay a little extra because they have no marginal costs at this sight, just a little more distance to truck the stuff.
Kramer |
