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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Letmebe Frank who wrote (20004)	6/11/1999 6:34:00 AM
From: Confluence	Respond to of 26850

Hello L. Frank, I believe the "No New Mines" stuff is exactly as Taz says, lots of hot air, jockeying, negotiating, etc. Obviously politics will continue to be important. How does this relate to WSP? While I'm not a shareholder, but still hope for positive results to enhance all diamond companies, I think the first place to look for effect is ABZ. ABZ should be getting all approvals very soon to move towards mining by 2001/02, but this may throw another delay at them. Because ABZ deposits are reasonably well understood (hell even the analysts at the big firms understand it!), the shares of ABZ really represent the present value of the discounted cash flow from future revenues, with a little jazz because of Snap Lake (interesting to note the minimal movement of ABZ as WSP went from late 3's to early 5's and back to middle 4's). So any delay in timing will hurt ABZ share price. This should have little effect on WSP because the size and value and mine development plan are not known yet. Some foreigners may be upset, may remember the bashing Inco's shares have taken (not all Voisey's Bay), and simply head for the sidlines when politics messes with their money. I would expect future developments on the "No New Mines" front to have a measurable effect on WSP only after the value and detailed structure of Snap is known, allowing for easy modelling of cash flows. As a side note, rising interest rates move discount rates higher and should also have a negative effect on shares of miners with initial production out a few years. Let's hope the volatility is just that and WSP comes out with a grade of above 100 cpht and values over $200/carat in the next while, as I'm told $200/tonne ore is necessary for a positive mining decision. Good Luck to all, Confluence