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Gold/Mining/Energy : T.ITE: iTech Capital (TSE) -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (639)	6/23/1999 10:33:00 PM
From: keith massey	Respond to of 5053

Marcos Good point on Loma de Níquel. I posted a long time ago about the potential value of Loma de Níquel in the future but since mining assets and nickel are out of vouge I have just ignored it on the thread for now and consider it one more bonus in the JDX package. However since you mentioned the asset.... Background: Loma de Niquel was the asset that got JDX to the place it is today. In Aug 23 1991 JDX, through its joint venture company Cofeminas, received the exploration and mining rights to Loma de Hierro. They drilled the site and in mid 1993 JDX signed a buy-in agreement whereby AMSA could purchase up to 70% of the project. On March 8 1996 the company sold a 37.5% joint venture interest in the Loma de Niquel property for gross proceeds of $22,473,429 and retained a 7.5% direct participation interest. In 1997 JDX had to make the decision to share in capital cost at Loma de Niquel and retain its 7.5% interest or use the cash for some else. JDX's share of the capital costs would have been around $27 million. On Dec 15 1997 Jordex announced that it would refrain from further financing of the project. This decision resulted in JDX's accepting dilution which reduced its interest to 2.2% as of Demember 31, 1998 (from the annual report). Great move on JDX's part. Loma de Niquel is a laterite nickel deposit in Venezuela. Annual production at 35-40 million lbs nickel annually over 27 year, capital cost of are estimated at US $450 million. The asset is owned by Minorco. In Oct 1998 the Boards of Anglo American Corporation of South Africa Limited ("AAC") and Minorco announce that they have agreed in principle to combine their businesses to establish Anglo American plc ("AA plc"), a United Kingdom company with global operations having its primary listing on the London Stock Exchange and listings on the Johannesburg Stock Exchange and other major European stock exchanges. I am not sure what stage the mine is at. JDX stated in a news release that it expects to receive a modest cash flow from Loma de Niquel by 2002. I cannot put a value on the asset but when they assessed the value at $1 million nickel was at a multi-year low. Nickel will recover in a few years when the rest of the world gets out of this recessions. I cannot place a value on this asset when nickel recovers but I am sure it is much larger than $1 million. Just another bonus piece of the pie. Best Regards KEITH