ECM.VSE - El Callao Mining. Message Board

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Gold/Mining/Energy : ECM.VSE - El Callao Mining.

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To: yosi s who wrote (1187)	2/5/1999 10:49:00 AM
From: BAKE	Read Replies (1) of 1253

ECM.....What am I missing? I wrote this yesterday(before study was released) *ECM. Bema owns ~40%. Latest resource >2.6 Million oz GOLD plus potential(ECM has 70% stake). Great scoping study 1997. "The study confirms that mining the property would be economically viable and that cash flows from the mining operations would be robust" Production costs $160 US and total costs $245 US(total costs were based on 2 million oz and should be much lower now that resource was increased by 25%). Awaiting pre-feasibility study.(should have been done 1 month ago). Market cap at present ~$5.8 million =~$3.9 million US. *Therefore....$3.9M US/(2.6M oz 70% stake)=$2.14 US/oz in the ground. Compare..... *Bema bought ARA.U for 3:1 stock swap(Bema trading at ~$3.40-$3.50 can. at time of announcement)...~$1.10-$1.20 can. for each share of ARA.U = ~$0.75 US/share. ARA.U had ~33M shares, and resource of 1 million oz plus potential(ARA.U had 80% stake). *ARA.U market cap....$ .75 US 33M shares= $24.75Million US. **Therefore...$24.75 US/(1M oz 80% stake)=~$30 US/oz in the ground. ***Bema bought ARA.U for $30 US/oz and is letting ECM rot in the groung at $2.14 US/oz.* This shouldn't be Bema should be doing something to get shareholder value up(ie.selling the project to someone else,or buying the rest of ECM shares). Also compare the latest Argentina Gold story..... ~34M shares. ~4.3M oz resource plus potential. Barrick is offering $5.50 can./share = ~$3.66 US/share. This all= ~$30 US/oz in the ground. Argintina Gold stock is trading at $5.30 can./share(it was $0.40 can. 3 months ago). ---->I hold ECM and I am not happy. ---->Does anybody else see a problem here? ---->Does anybody know what is goinr on with this company? ---->I know others have been upset with management. ---->Please respond/criticize/correct/offer info on my comments. Thank's to anyone who responds. Gary . ps.I state again Bema should be doing something to get shareholder value up.** 1)Sell the project to another mining company. 2)Buy the rest of the outstanding shares of ECM that Bema doesn't own and Bema can develop the property sometime in the future.

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