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

To: baystock who wrote (1809)	8/2/2001 1:36:00 PM
From: que seria	Respond to of 4051

Agreed. It's why I didn't buy in. You're betting on a meaningful intermediate term rise in the POG coming and staying. I'd rather buy a call on POG that doesn't come with debt and as much dependence, even if the play is smaller. Agree ELD has merit as a gamble, but I've decided to cut back on gambling. I assume everyone here would read the 2000 Annual Report (4/23/01) before investing. In it I see a big (and essential) roll of the dice on a project that is at best uncertain given the current POG and permitting situation. At least the "base case" study for Kisladag uses a $275 POG, so the company isn't playing tarot-card games the way companies have been at $300.

To: baystock who wrote (1809)	8/2/2001 3:17:33 PM
From: russwinter	Read Replies (1) \| Respond to of 4051

ELD is bobbing and weaving on this. It looks like debt at year end will be US 15 million because of the hedge book closeout. They had 17.6 million in cash, receivables and inventory on 3/31, and 6.8 current liabilities, with another 6.2 listed as long term debt coming due. So they should still have $4.6 million working capital to work with. Normally that small debt shouldn't be an issue. However, when you have a marketplace the values an eight million ounce low cost deposit and an operational mine at an enterprise value of only US 22 million, that presents a problem I suppose. Most gold mines and development deposits have little, if any value (my bet is this is wrong) in the capital markets, at present. To me this refi doesn't seem insurmountable, but then I thought TVX with their fine asset base would come out much better on their debt conversion. With ELD though we are talking 15 million, not 250 million. ELD will likely need some premium price investors, and I sensing the big Turkish partner. biz.yahoo.com From the last IR: "Since signing the ARCA the Company has reduced its credit position with Rothschilds from US$35.0 million on December 31, 1998 to US$16.2 million on June 30, 2001. In addition, as of July 2, 2001, the Company closed out its gold hedging contracts maturing after December 31, 2001 and all Brazilian Real hedging contracts. The funds from the Hedge Contracts will be applied as prepayment of the ARCA reducing the Company's debt by a further US$1.2 million prior to year end. US$400,000 of the hedge liquidation will be available to the Company for working capital."