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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies.
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To: william smith who wrote (7268)3/15/1997 7:01:00 PM
From: Gary Melnyk   of 28369
 
Good point Will.

I know that FCX is responsible for most of the financing and that Bre-x wont have to do their own financing. But when I say the stock price will be unstable because of financing, I'm implying that all the financing details ie...How much the mine will cost, and what the terms of repayment are, are not known at this time and probably won't be known untill 1.5 to 2 years before production starts. During this time its possible the stock will drift lower. I don't really know, as most people don't, if higher reserve estimates will boost the stock. There are some convincing arguments that higher reserves at this point won't have much effect on the share price...ie gold to be mined 20 years from now is not worth all that much. As for a market crash....well thats a very real possibility.

Regards
GTM
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