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

To: Elizabeth Andrews who wrote (479)	7/6/2000 12:47:21 AM
From: Claude Cormier	Read Replies (2) \| Respond to of 527

Eliz, Of course TMI is no Dia Met. Still, I thing your suggestion to short is premature. Company..Market Cap....Annual Sales....Cash flows DMM........$C540M.......$220M.........$60M or so TMI........$C23M........$22M..........$4-6M or so TMI is much smaller, but is on the tract to be more profitable at the same time it has much more leverage. They have excellent growth potential and may well discover something extremely valuable that could change their big picture. Their reserves can support current production rate for 30-60 years. So no need to say that they will expand at a 100% annual rate in the coming years. For sure French Guinea is not Canada. But it is a very stable country with no major political problem. I know a few who worked there.

To: Elizabeth Andrews who wrote (479)	7/6/2000 2:06:25 AM
From: mick	Read Replies (1) \| Respond to of 527

Liz, if you want a company with an excellent balance sheet, a history of 25 % annual growth over the last 5 years and which trades at 3x current earnings, check out Sino Forest (Tre.a on Toronto). They manufacture chips for the Chinese pulp and paper market. If you want a company with blue sky potential, buy TMI. The alluvial is growing enough to support base exploration. We know that there is source kimberlite (just gotta find the right one). We also know historically that the Guinea property diamonds are over 350 US$/ct which is twice Ekati.Production is lower of course, but I think they will be able to reach 100 Kcarats as sustainable within 2 years from alluvial. This should allow them to be profitable at about $ 0.5 eps which ignores any potential contribution from kimberlite mines. Play the short all you like Liz. There is roughly 10 k shares on the buy between current price and $ 1. Let me know how many you are going to short and I will get ready with my bid. Be careful though, there is only 25 k on the ask that are below $ 2 (don't know what is above). One thing you are right about TMI - it doesn't have any liquidity. Why should you buy Diamet ? Based on your logic, you really should buy Sino Forest (yes, it is one of my larger holdings). Be careful though, I heard that some Asian companies like to use "salted chips" from placer tree deposits. I think Sino is above board, but you never know. Cheers

To: Elizabeth Andrews who wrote (479)	7/6/2000 2:24:02 AM
From: mick	Read Replies (1) \| Respond to of 527

A Better Short is RXD, t They have almost no production, miniscule revenues, and to be polite, shall we say highly under developed blue sky potential. Yet they have over 10x the market cap. They do have much better liquidity and a lot better promotion in Eurpoe than poor old TMI could ever muster. Cheers

To: Elizabeth Andrews who wrote (479)	7/6/2000 9:08:35 AM
From: Phil Cressman	Read Replies (2) \| Respond to of 527

Elizabeth you can put your money wherever you wish and if you think Diamet has more upside than TMI go for it. However when you say 'this is a short' you are getting into something completely different. If you like the 12 times earnings figure of Diamet then the roughly 4 times earnings of TMI does look better. Stocks all move up and down with market fluctuations as well as on news of individual listings progress. To suggest TMI as a short means a very good chance of selling pressure. Why? On the other hand a short sure doesn't want much chance of a share price increase. You'll have to admit that TMI has a number of irons in the fire and a rapid price increase is not at all unlikely.