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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (795)	4/20/2001 9:55:44 AM
From: russwinter	Read Replies (2) \| Respond to of 4051

<GEO, Marathon pre-tax IRR> Claude, the scoping study uses 24% which is not bad. They are using 700 palladium prices and 600 platinum, but only 265 gold and 80 copper. Since I'm a bull on all those commodities, I find those numbers acceptable. The capex is up there at US 120 million, but my bet is that more reserves are coming. Remember, this deposit wasn't especially explored for PGE's in the 80's and those old drill results are the basis for most of the project projections. It is interesting to note that when GEO recently drilled using PGE's as the target, the grades were higher. Therefore my expectation is that the economics will get very robust as this moves (quickly) forward. GEO's management has really impressed me with their approach. I was actually skeptical of their ability to develop Vueltas del Rio. Message 13808951 Not only did they do it on schedule but at about 2/3 the original estimate. Further, it appears the cash cost is coming in below projection. Cash flow there will kick in at least 16-17 cents a share (on a 38 cent stock today) over the next year. Then they turn around and really stole this Marathon project. So you end up with strong PGE exposure as well and with a profitable small cap company (US 15 million market cap) and savvy management. Really the best of all worlds for a junior PM investor. Should be a core holding.