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Gold/Mining/Energy : Sunshine Mining at Rock bottom? -- Ignore unavailable to you. Want to Upgrade?

To: baystock who wrote (126)	8/2/1999 1:44:00 AM
From: Claude Cormier	Read Replies (1) \| Respond to of 167

<<You are quite right about the weak balance sheet. Do you mind telling me how you came up with the US$40-45 number ? >> According to SSC' news release... the $1.50 net cash production costs includes tin revenus but do not include any zinc production form the 11.3M tons of 2.2% zinc that is contain in the allow surrounding the silver/tin deposit. There will certainly be an improvement in economics from evnetual zinc production... but I don't expect major gains. 2.2% zinc is rather low grade and the capex will have to increase to support this production... Still it will be a positive development. Given that Pirquitas will produce 9M ounces silver and using $4 as net cash flow per ounce ( I am generous here as net cash costs of production of $1.50 certainly do not include management costs and interest expense on debt ) I get $36M of cash flow per year. The Idaho mine will move near 7.5M ounces per year, but there the costs will be $3.50 leaving $2 per ounce for a max of $15M in cash flows. Roughlym, total will be $51M.... less managements costs and interests exopenses on debt that could be as much as $160M if the debt financed everything... I may be off on some numbers here...but that is how I see it... If you see something worng here...let me know.