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Gold/Mining/Energy : Canmine resources -- Ignore unavailable to you. Want to Upgrade?

To: Marshhawk who wrote (1747)	8/21/1999 2:44:00 PM
From: dave brown	Read Replies (1) \| Respond to of 2769

Pleasant response, thanks. My conclusion not to buy Canmine have been drawn from many reasons as been presented and discussed over the past year or so. As each of my concerns are addressed, my conclusions could change at some point. Mining stock are benefiting as renewed optimism of the mining industry and the improved base metal market in general as a result of mergers and acquisitions of major producers along with economic recovery in Asia and Japan. It's starting earlier than I stated awhile back, but non the less its starting. I don't think I'm too far off though. TSN turning point and we will likely see more gains over the next while and a shift in my tone. The time to buy stock without question is when blood is in the street. Therefore, Inco could have been bought at a low of $12.50 and sold at $33 yesterday for a 264% return. No comparison to Canmine considering risk/reward. So no need for you to keep comparing your minor Canmine risky return to a solid conservative Inco pass. Even better, I am now selling Inco covered call options using my Inco shares to enhance my rate of return. Also selling a few naked put options with it. Would be happy to explain more, if interested. Successful juniors can provide substantially higher returns, but I still don't see Canmine as being successful for the amount of risk one has to take. This may and has changed somewhat based on new situations such as raising the $1.2 million in flow through financing for exploration programs. This brings back the speculative edge to the stock which intrigues me. Remember, flow-through funds can only be used for exploration programs NOT for overhead expenses. Having a career in the mining industry, I realize the challenges Canmine have bring a deposit into production. I see cobalt production as a possibility and nickel production as a remote chance for the reason discussed. Take it for whats its worth, time will tell. If they do manage all the hurdles my hat come off to them. But why risk capital at this point. There will be plenty of opportunity to jump in along the way and make some cash. Believe me, Canmine's overhead for a non-producing company in the junior mining game is unreasonably HIGH. One would expect cut-backs in expenses given the market we just went through, but Canmine increased overhead from 97 to 98. Much of these expenses for promotion, consulting, wages, management fees, office and general to the tune of $1.7 million. If interested I can give a table of comparisons to other junior companies. The Cobatec deal will likely have conditions such as successful completion of financing. Remember Canmine not only have to raise an additional $1.5 million for the facility but the $+/-10 million for mine development. You once told us months ago "financing is in the bag" Where's the money!! Isn't there a level of risk here for investors given your cash flow estimates and wild share price predictions mainly rely on this financing?? Give me the financing and I might change my conclusions. By the way, the biggest losers in the Cobatec deal are the Ontario residents and one individual holding the largest share of the debt, I believe to the tune of $16 million. Someone once told me many years ago, there comes a time you should listen more than you talk. We all like to express our views, but at the same time we should listen to others. Helps in achieving a balance personality. All the best.