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Gold/Mining/Energy : MIRAMAR MINING (MNG) -- Ignore unavailable to you. Want to Upgrade?

To: jacq who wrote (331)	6/17/2000 5:25:00 AM
From: John Dally	Read Replies (1) \| Respond to of 457

This thread has been quiet for some time, so I thought I would post my thoughts on MAE to get things going . . . In my opinion, since the new CEO (Anthony Walsh) took over in March 1999, MAE has made all the right moves. They came to an agreement with the striking workers, re-started the Con Mine, took over the Giant Mine (with great synergies and at a very low cost), bought a 50% interest in the Hope Bay exploration project, and have cut SG&A costs. When gold was at an all-time low and other companies were cutting back, they used their cash to acquire and position themselves for the coming recovery. I first started buying MAE on a "sum of the parts" basis when it was valued at Working Capital + the value of its NNO shareholdings. (MAE owns 62.8% of NNO.) The gold mine and resources could be had for free! So, after a 35% price move in the last couple months, where do we stand today? (All numbers are $CAD.) Today's Market Cap = 60 m shares x .93 $/sh = $56 m From the 3/31 earnings report, Working Capital = 29.4 m Value of NNO holdings today = 63% x $17.8 m = $11 m Today we've got working capital + NNO = $40 m. So, what do we get for the remaining $16 m of Market Cap? 1. A 130,000 oz. gold mine operating at a cash cost of US$265 per ounce. (A nice option on the POG.) 2. Newly realized gold tailing and refractory resources, and, through its take-over of the Giant Mine, additional gold resources of 1.31 million ounces. Summary is here: miramarmining.com Full story here: (See the February 24, 2000 news release.) miramarmining.com 3. An exciting exploration project at Hope Bay. Recent Boston results: biz.yahoo.com Doris results: biz.yahoo.com Finally, to top it off, I discovered that they have a re-vamped web site! -g- (It actually is quite a bit nicer than the old site.) miramarmining.com Comments welcome . . . Best regards, John.