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

To: russet who wrote (23930)	8/4/1999 9:56:00 PM
From: maintenance	Respond to of 26850

Hey buddy here goes: The revenue is t/yr X $/t. The 7% is for marketing, royalties, etc. The G&A is from the MRDI report, I think I may have raised that, don't remember. The EPS I posted is after payback. I did put in capital costs. Depreciation nope, I didn't do that but that is a non cash expense that net benefits shareholders anyway. Site reclamation, I have no idea and ignored it. Interest was at 7% for the full cap cost. To account for interest you really need details of the financing, we don't have that so I calculated based on shortest payback, not real likely but the more conservative approach. As for more than 48000000 shares, well then you would also reduce the debt. I suspect your right in that it will likely be higher than 48 but how much I don't know. Maybe Lassonde will do a royalty deal for the cap cost, who knows. I can't imagine a figure anywhere near 20 for G&A unless you including other costs in that figure, I assumed you were. I will admit my cost/t may be a tad low, I think I read some low ball figures somewhere and while I did not adopt them I did lower my original figure of 87 $/t to 70. I would expect any increased mining rate would verify my action. As for 363, yes, not reasonable, I don't have a answer. What would be reasonable? I would expect Turner to start small and use the proceeds to expand up to 5000 or even 10000 t/day. When I spoke to him that was my interpretation of his comments. While this would not eliminate the need for financing it would sure make it easier and cheaper. I really think that what we are faced with is an abandonment of WSP by aggressive speculators. I think this will prove to be a poor strategy, as now there is reason to hold this stock. I would think $15 to $20 is reachable in the not to distant future. Vague, I know but Aber was below 7 for quite a while. The market does that sometimes. Aber was such a screaming buy at that price is was crazy, I think Winspear is in that boat now. The value is undeniable. Cheers Let the scrapping begin!