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

To: TrueScouse who wrote (994)	5/16/2001 11:21:17 AM
From: Stephen O	Respond to of 4051

Black Hawk Mining came out with their first quarter earnings. Here are the highlights. BLACK HAWK MINING INC ("BHK-T") - Increased Earnings And Increased Cash Flow - For The First Quarter Of 2001 All dollar amounts are stated in US dollars, unless indicated otherwise. BLACK HAWK MINING INC. reported significantly higher earnings and cash flow for the three month period ended March 31, 2001. In addition, subsequent to the end of the quarter the Company retired all of its bank debt and CDN$2 million of the CDN$4 million outstanding convertible debentures. //st HIGHLIGHTS FOR FIRST QUARTER 2001 * Net income of $1.0 million (CDN$1.6 million) or $0.01 (CDN$0.01) per share. * Cash flow from operations of $1.6 million (CDN$2.5 million) or $0.01 (CDN$0.02) per share. (The El Limon Mine produced 21,441 ounces of gold, a 15% increase compared to the first quarter of 2000. (Cash operating costs of $156 per ounce were 24% lower than for the same period in 2000. Three Months Ended March 31 2001 2000 Revenue (000's) $5,672 $7,739 Realized gold price per ounce $265 $287 Net income (000's) $998 $283 Net income per share $0.01 $0.00 Cash flow from operating activities before working capital changes (000's) $1,610 $1,276 Cash flow per common share from operating activities before working capital changes $0.01 $0.01 Gold Production (ounces) El Limon Mine (ounces) 21,441 18,611 Keystone Gold Mine (ounces) - 8,381 Total (ounces) 21,441 26,992 Cash Operating Cost per Ounce El Limon Mine $156 $197 Keystone Gold Mine - $226 Weighed average $156 $206 Their website is www.bhkmining.com

To: TrueScouse who wrote (994)	5/16/2001 1:26:16 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 4051

Howy, In the 1994-96 gold high, reserves in the ground were valued at $100 and more for juniors. CBD would be trading in the double digits..! Claude

To: TrueScouse who wrote (994)	5/16/2001 2:08:29 PM
From: russwinter	Read Replies (1) \| Respond to of 4051

I've seen the number 25% of the difference between POG and cash cost used for advanced prospects and reserves: for example POG 270-150 cash cost= $125 X 25%= $30/oz. Resources would be less. The days of $100/oz exploration deposits are long over, and the last deals at those levels are referred to as "the winner's curse". The market is really valuing deposits with cash costs over $200 as worthless, and over $175 nearly so. In fact, what intrigues me are that the ones between 150-175 (below which are considered top quartile)are also valued nominally. Once you get down below 100, you start to see some double digit per ounce values. In CBD's case, we need to bet on the numbers being tweaked lower, as right now they are over 175. It's a pretty good bet, given what we are paying today. If you want an example of a value (less than buck an ounce on EV basis)put on an excellent deposit (PNG: difficult country?), with huge upside expansion potential look at MNP. This little formula is probably too simple, as a bunch of other variables (political risk, capex/quick start, expansion likelihood, synergies, etc.) also need to be evaluated, but is a start and also allows investors to picture leverage to POG.