DESERT DIRT INDEX VALUES AS OF MAY 28, 1999:
NOTE 1: For the year of 1999 through May 28, MGAU's stock price is up by
317%, MXAM is up 207%, CHIP is + 32%, GPGI is +18% and NAXOF is -31%.
For the second quarter of 1999 through May 28, GPGI, MGAU and MXAM were
relatively unchanged (less than 10% for the quarter), while CHIP was up 43% and
NAXOF was down by 42%.
During the month of May, CHIP's stock price increased by 56%, MXAM's by 44%
and GPGI's by 21%, while MGAU's stock price decreased by 16% and NAXOF's
by 48%.
A basket of the five stocks is up approximately 100% on the year, depending on the
particular indice. (Keep in mind, of course, the disastrous year 1998 and that this
assumes a fresh investment on Jan 1, 1999 without accounting for the 1998 losses.)
NOTE 2: While it can be argued that CHIP should no longer be included in the
indices since it has effectively exited the desert mining business, they account for
such a small part of the indices (a change of 25% in CHIP's stock price changes the
indices by less than 2%), it is not worth the effort of removing them at this time.
NOTE 3: DD NEWS -
GPGI announced May 10 that they had shipped a 2 kg anode slime sample to Sabin
Metals Corp on April 29, and that they were increasing their work schedule to 15
shifts/wk for production of the anode slime while continuing to work on a
leach/precipitation process. In a May 24 PR, they announced that Sabin had
recovered in excess of 3 oz of precious metals from the 2 kg of slime with a
calculated value of $600,000 per ton of anode slime. Also, production increases
were continuing with the goal of shipping 1000 pounds of anode slime to Sabin (no
target date announced for shipment) and that pilot testing of the leach process was
beginning.
MGAU reported on May 10 that they had completed the purchase of the
Johnson/Lett technology for 13MM shares of common stock (bringing the total
outstanding shares of stock to nearly 28MM). Based on the previously reported
recovery of 1.41 oz gold/ton of Sinagua ore, calculated recovery costs for the gold
varied from $210/oz at the current rate of 5 T/D, down to $100/oz for the June 30
target rate of 100 T/D and $70/oz at 1000 T/D (targeted for early in the year 2000).
On May 28 the company announced that it was extending the exercise date for the
approximately 750,000 outstanding warrants ($2 exercise price) from June 1, 1999
to August 1, 1999.
MXAM announced on May 12 that they had secured funding of $30MM with
closing and initial draw of $10MM scheduled for July 1, 1999. Funds will be used
for construction of a 10,000 T/D mine/mill at Peoria 7 and further exploration at
Peoria 7 and other properties.
NAXOF announced on May 3 the results of their April 30 AGM where 8 directors
were elected, including 4 from the dissident group led by Fr. Ofiesh, although in a
subsequent May 27 release they said they had received a copy of a petition from Fr.
Ofiesh asking the court to overturn the election and install 8 directors from his
group.
DATE__________”DDI-CAP”________”DDI-SHR”_________”DDI-DOL”
MAY 28__________1780_____________2035_________________2064
MAY 21__________1636_____________1784_________________1813
MAY 14__________2136_____________2390_________________2480
MAY 7___________1958_____________2388_________________2102
APR 30___________2099_____________2439_________________2035
APR 23___________2131_____________2493_________________2044
APR 16___________1893_____________2220_________________1956
APR 9___________1705______________1900________________1773
MAR 31__________1958______________2157________________2032
MAR 26__________1883______________2047________________1910
MAR 19__________2027______________2199________________2157
MAR 12__________2180______________2391________________2259
MAR 5___________2181______________2393________________2271
FEB 26____________2074______________2199________________2263
FEB 19____________1620______________1758________________1728
FEB 12____________2064______________2440________________1953
FEB 5____________1727______________1901________________1625
JAN 30___________1712______________1758________________1440
JAN 23___________1369______________1489________________1375
JAN 16___________1147______________1169________________1107
JAN 8 ___________1046______________1052________________1035
DEC 31___________1000______________1000________________1000
NOTE: For the year 1998, the indices were down by 85-95%. These indices were
based on a basket of stocks purchased Jan 1, 1998 on the same basis as described
below.
BACKGROUND
Market Indices for the basket of 5 “Desert Dirts” have been calculated for three
different investments.
(1) MARKET CAPITALIZATION (DDI-CAP) - Assumes $1000 invested in the 5
stocks on the basis of the proportionate value of the market capitalization of the
stocks as of 12/31/98.
(2) EQUAL SHARE AMOUNTS (DDI-SHR) - Asssumes $1000 invested by buying
equal number of shares in the 5 stocks based on their 12/31/98 closing prices.
(3) EQUAL DOLLAR AMOUNTS (DDI-DOL) - Assumes $1000 invested by
buying equal dollar amounts of the 5 stocks at their 12/31/98 closing prices.
Initial values for the three investments were calculated as follows, using estimated
shares outstanding as of Dec 31, 1998:
STOCK_________CHIP______GPGI_______MGAU_____MXAM______NAXOF
MM SHARES ______20 ________30__________20_________55___________35
12/31 PRICE_______0.041______0.22_________0.39_______0.075________0.51
“CAP” SHARES____538_______807_________538________1479_________941
“SHR” SHARES____809_______809_________809________809__________809
“DOL” SHARES____4878______909_________513________2667_________392
With these share amounts, index values were calculated as above.
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