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Gold/Mining/Energy : T.ITE: iTech Capital (TSE) -- Ignore unavailable to you. Want to Upgrade?

To: keith massey who wrote (2416)	11/23/1999 2:20:00 AM
From: Condor	Read Replies (1) \| Respond to of 5053

Loma de Niquel: Jordex owns 1.6% of Loma de Niquel. The Venezuelan Nickel deposit is being brought into production at a cost of $657,000,000 Cdn and is financed by a group led by Anglo American, one of the worlds largest mining companies based in the United Kingdom. The mining development is scheduled for production in mid 2000 and requires no cash from Jordex. The article is dated June 1999 and since then the price of Nickel has surged from approximately $2.00 US/lb. to $3.50 US/lb. This would indicate the development and its profitability are enhanced substantially. Jordex has indicated an interest in selling their share of this project and one can only speculate on the value of their holding. It is common in the mining industry to expect a 15 % return on investment. With the size of the investment indicated, then net revenues of US $98,000,000 per year would probably be forecast for the undertaking. 1.6% of this would be U.S.$1,568,000 or CDN$2,289,000 per year. A purchaser therefore might reasonably expect to recoup his capital outlay in minimally a two year time period given the stage of development of the project and accompanying unknowns. This in my estimation might place a valuation on a sale of the property in the range of 3-5 million dollars. The accompanying photo of the development will be of interest to Jordex shareholders and potential investors. conapri.org Regards C