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Gold/Mining/Energy : Francisco Gold - FGX.V -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth Andrews who wrote (999)	10/19/2000 11:40:21 PM
From: Claude Cormier	Respond to of 1907

<<If the recovered grade is 3.4 gms au equiv per tonne and the mining and milling cost is US$8 per tonne that yields a cost per ounce of about US$70. If the mine receives US$240 per ounce after refining and trans charges then that leaves US$170 per ounce margin.>> Well I think that the mining and leaching (more probable than milling) will even be lower than US$8.... Id' say US$4-$5. You also have to count the tons that have no ore ... the waiste. So US$70 is probaly close to the reality and US$170 margin is probably OK for gross cash flows per ounce. <<The present value of that over 10 years is worth more than US$25 per ounce. >> Well don't forget the capital costs, interests and admin which will likely be at least $30/ounce for 500,000 ounces...Also add the income tax of say 35%....So the good figure is probably between $25 and $50. Anyway... we know they goona find more than 500,000 ounces.

To: Elizabeth Andrews who wrote (999)	10/19/2000 11:43:02 PM
From: russet	Read Replies (1) \| Respond to of 1907

Hi Lizzy, If no one else wants post# 1000(ha,...Claude, I knew you couldn't resist post #1000,...now I will have to take 1001 ;-))) I have to say I'm not sure about the popcorn at this movie either. Cost per oz of US$70 is hard to believe. If this was true, Barrick would have grabbed this sucker last year. All this present value stuff just boggles my statistics minor mind (ggggggggggggggg). Gold is in the dumps. All the market cares about is growth, electrons, photons and interesting molecules without Au in them. What income are you going to give me next year. Nothing you say,....sell!!!!