Global Platinum & Gold (GPGI) Message Board

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Gold/Mining/Energy : Global Platinum & Gold (GPGI)

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To: Bruce A. Thompson who wrote (10587)	5/26/1999 5:10:00 PM
From: Ed Fishbaine	Read Replies (2) of 14226

Bruce Why not take a shot at the moon? McKay says he has solved the problem of a leach/precip method at the laboratory level. This means no furnacing and direct shipment to the refiner so costs are very much lowered. Also, if the ramping up is successful he thinks he can do a minimum of 120 tons of head ore per day!!!. This compares with about 5 tons of head ore per day processed using the furnacing method. So, without furnacing he can do about 24 times as much processing. 24 times the $50,000 per week you indicate equals $1,200,000 per week. And this is with significantly lowered costs. What would the stock be worth then? 24 times what Zeev stated ($5 per share)? In other words $120 per share. Sounds crazy doesn't it. Perhaps somewhat less: At an annual rate of $60 million and allowing half for costs= $30 million and with 30 million shares out we have earnings of $1 per share. A growth situation like this would be capitalized at around 40:1 therefore the share price would $40. But as a growth situation there is no limit to how much they could produce by adding infrastructure. At 120 tons of head ore per day = 36,000 tons per year it would take at least 15 years to exhaust the existing Hassy pile and another 100+ years to use up the raw ore on the Hassy property. This to say nothing of the Weaver Creek which is bigger than the Hassy and the Oro Grande which is richer. Soone might see a P:E of 60 or 75. Doubling or quadrupling production would not exhaust reserves, though it might pressure the metals prices, especially rhodium. Hey remember there is ruthenioum and iridium in the ore. And osmium too. They will get to them in due time. Sounds very crazy no? Ed Ed

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