Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Pan American Silver Corp (PAA-T) -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth Andrews who wrote (320)	12/8/1999 2:13:00 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 358

Eliz, A great discovery, for me is a deposit that is much larger than the average deposit and has great economics. BAY's Alamo Dorado is one the largest heap leaching silver deposit in the world with in excess of 100 millions ounces. As for metallurgy.... at 60% which appears to be the very worst case, this project has a NAV near $5 per share of BAY and a IRR of 44%. If you know the difference between chlorargyrite (or cerargyrite) and argentite, you will understand why the odds are for something closer to 70% recoveries. In that case, I calculate a NAV above $7.50 Even at prices of $3.50 silver, Alamo Dorado I think that would be cash flow positive. You say that real metal prices will continue to fall.... that is not possible as we are already below average production costs. Demand continue to grow, current mines are being depleted and very few new projects are economic... this imply a coming price explosion.