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Gold/Mining/Energy : Methanex (MEOHF) -- Ignore unavailable to you. Want to Upgrade?

To: tracy zubrecki who wrote (185)	9/8/1999 6:44:00 PM
From: zigler	Read Replies (1) \| Respond to of 213

The Kitamat site is already sold to another company run by previous Methanex management. I don't know what their plans are for this site. Medicine Hat has one plant left of three and in the long term this plant will not survive with small production and high cost natural gas. When this happens all five of Methanex's North American plants will be gone. Their plan is and must be to become a low cost producer by concentrating on Chile and New Zealand or elsewhere like Quatar where they have a deal. I have have not worked out the book value of Methanex but if you take their remaining low cost assets and multiple the yearly plant production by US $300 (cost to build a new plant) and then make adjustments for debt and accounts receivable you get a number like $8 Canadian per share of realistic value. I count the New Zealand plants at only $150 value because of problems with long term gas reverses. I have heard numbers like $20 per share of replacement value but a lot of their assets now are useless and of no value.