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

To: Cage Rattler who wrote (1002)	10/20/2000 1:57:59 PM
From: russwinter	Read Replies (4) \| Respond to of 1907

The new developments at Marlin are not "same oh, same oh" or rumours. This has the making of another high quality, low cost deposit that will be sought after. My reaction in post 996 was to the market, or more accurately the lack of a trading market in FGX stock. There is no feedback mechanism whatsoever in these stocks. They are in a vacuum, so the only thing one can do is a back of napkin private market valuation here. Certainly if they have three million ounces likely going to four million plus, with a cash cost of under $100, we can assign a value of $35/oz to a purchaser, and that would still be a bargain. So we price four million ounces and leave a little work for the buyer times $35= US140 million, add in FGX's cash of US23 million= US163 million take out price. Convert to CDN= 245 million/15.35 million shares= roughly $16. After Marlin I now look for it to happen before year end. It is just too good for a major to pass up, and we could very well get a bidding war. The junior exploration market could use it, to remind people that many of these deposits do have real value. I have therefore passed on your advice not to "throw good money after bad". Accordingly, I doubled up my position yesterday on the dip to 5.45.