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Gold/Mining/Energy : GEOMAQUE -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (191)	6/9/2000 11:07:00 PM
From: baystock	Read Replies (1) \| Respond to of 260

I received the GEO annual report today in the mail. Nothing really new hear, but some highlights for me were: At sub $300 per oz gold price, it is expected that the San Francisco Mine will be put on care and maintenance in July. Under this scenario, ore that is stacked on the leach pads will still be processed and thus a total of 50,000 oz will still be produced in 2000 at cash cost in the low $200 range (I believe this cost is the average for the whole year before and after the shutdown of new mining). $3.5 million debt facility has been arranged with Resource Capital Fund II to bring Vueltas del Rio into production in Q4 2000. It will produce 60K oz per year at $169 per oz cash cost. Management does not consider it prudent to hedge. Geo is essentially an unhedged producer at present. Geo is evaluating potential M&A candidates to take advantage of opportunities created by low POG. So looks like some significant cash flows will be generated next year if things go smoothly with the Vueltas mine startup. -Ram