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Gold/Mining/Energy : Corner Bay Silver (BAY.T) -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (551)	12/21/1999 4:19:00 PM
From: russet	Read Replies (2) \| Respond to of 4409

Hamster calculations, for share price based on first year of production earnings per share. Please check them over Claude and others, and tell me what you think. I don't have a good grasp of many of the numbers, but I think all the costs are represented. The multiple is representative of sentiment in the "show me the earnings market" for mining stocks today. Data as presented by ClaudeThe average ton of material has a silver content of $11. At a rate of 15,000 tons per day, the mining and processing costs would average $3.40 per ton. This cost evaluation is based on several other installations in Southwest US and Mexico (Rand, San Francisco, La Colorado and Morris) Average recovery rate are not yet confirmed, but they will be in the 60%-70% range. Mini-column and bottle roll tests on chips or fines from the RC drilling program were between 70%-74% (chips) and 89-97% (fines) on the high grade stuff. They were between 58%-64% for chips on the low grade materials and same as the high grade for the fines. These numbers compare very well with the 58% average recovery rate obtained by the profitable Rochester mine owned by Coeur D'alene. Base on other operations in the region, BAY has estimated CAPEX at US$30M plus or minus 10%. 15000 {tonnes/day} x (US$11-US$3.40){revenue-cost to process} x 300{production days/year} x 0.60 {recovery rate} x 1.47 {U.S. exchange} - CDN$3,000,000 {overhead and exploration costs} - CDN$7,000,000 {financing interest and depreciation on capex of CDN$30,000,000} - $8,000,000 {tax 40%} / 11,000,000 {outstanding shares & warrants} = CDN$1.10{eps} * 8 {multiple} = $8.85 price target