Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Breakwater Resources (T.BWR) -- Ignore unavailable to you. Want to Upgrade?

To: Gerd Schwarz who wrote (822)	7/26/2000 1:58:05 PM
From: Stephen O	Read Replies (4) \| Respond to of 962

TD Securities Analyst comment on Q2 Wednesday July 26, 2000 Breakwater Resources Ltd (BWR) C$2.56 TDSI Analyst Lawrence Smith Breakwater reported Q2 earnings of $0.05 per share vs. $0.06 in Q1 –BUY BWR reported Q2 EPS of $0.05, vs. $0.06 in Q1’00 and $0.10 in Q2’99. BWR faced higher treatment charges in the quarter. Minesite cash costs were US$0.41/lb zinc, on target with plan. In Q2 BWR purchased the Bouchard-Hebert and Langlois zinc/copper mines from CBJ. Despite some operational problems, both mines were accretive to earnings and cashflow in the quarter. BWR also entered into an agreement to acquire Jascan Resources in an all stock deal. Jascan’s main asset is a portfolio of securities, BWR intends to liquidate the securities and use the money to pay down debt. Jascan’s shareholders vote on the transaction in mid Sept. The company has outstanding bids on two potential asset acquisitions, considered to be material in size. Mgmt remains positive on the outlook for zinc prices due to strong demand and declining inventory levels. We maintain our BUY recommendation, target price $4.75. Buy with 12 month target of C$4.75 Return 85.6% Year CFPS C$ P/CF 1999A $0.51 x 2000E $0.70 3.6x 2001E $0.72 3.6x