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

To: russet who wrote (23624)	7/26/1999 6:57:00 PM
From: maintenance	Read Replies (1) \| Respond to of 26850

I see your numbers. Question, what's the life expectancy of SUF's income producing asset? Cheers

To: russet who wrote (23624)	7/26/1999 7:06:00 PM
From: Confluence	Read Replies (1) \| Respond to of 26850

Hello russett, Thanks for the math update. I have a couple thoughts: I don't the taxes should be an issue for many years, because the exploration and development expenses will allow for tax-loss carry-forwards for quite some time. The other issue is the NPV of these future earnings. While I don't know how the future should be discounted, it seems that most analysts do, and thusly they would reduce these numbers (like on ABZ) to bring them into the present. The other issue is timing of production. When? How fast can stuff be taken out of the ground profitably? This is very important, as an extra year or two could explain a 10-20% discount. I think that cash flow might be the real target of analysts, and I believe that these numbers might be nicely higher than yours, with a similar multiple. I'm gonna stick with the $2.50 to $3.00 with the provision that the CF numbers demonstrate consistency. If not, the whole timeline goes way back and lookout below. Regards, Confluence