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

To: Elizabeth Andrews who wrote (558)	12/23/1999 12:19:00 AM
From: Claude Cormier	Respond to of 4409

<<Ya, like the Capex might be C$60 million not the C$18 million suggested. >> Nobody suggested C$18... I have always used US$30 ($C44M). All analysts following BAY agree with this estimate plus or minus 10%. I've checked my self this number with a few contacts which say it should be in that range. The crushing circuit will make the difference between +10% or -10%. But given the results to date and the fast kinetics of the materials, it appears it will be US$30M or less. And with these CAPEX, the NPV is $5 with recovery rates of only 60%. <<And what happens to the shares issued if they have to sell another 25 million shares >> Do your maths again, Eliz. This will be financed easily through some debt and some equity. The stock is likely to go much closer to $5 when the recovery rates are confirmed, possibly higher if they discover additional reserves. At worst they will issue 5 millions shares or so.