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

To: Stephen O who wrote (2019)	9/6/2001 8:03:27 AM
From: re3	Read Replies (1) \| Respond to of 4051

i think we know you like it...

To: Stephen O who wrote (2019)	9/6/2001 10:27:58 AM
From: Claude Cormier	Respond to of 4051

Stephen, >Balack Hawk's debt left at the end of Q2 was $2 million >Cdn. Well the Quarterly report shows $4.1M US at June 30, 2001, including payables and current portion of long term debt. Total current liabilities are at US$5.4M. But that isn't too bad as they have just enough short term assets to cover this. >however cash flow was $1.2 million US. That is operating cash flows... counting admin and exploration costs of $518K, there is only $600K left. But again, it is much better many who are loosing money. >Also it's untrue that costs were higher, it was just revenue that was lower. You mean production that was lower ? I agree. But still, the cost of producing an ounce was higher at $204/ounce. Anyway I agree that this appears to be temporary. > This exploration is low cost to BHK I agree. But Manantial is a high cost project that will need at least $6 silver to come to commercial production. I don't know about what Newmont is looking at. Stephen, I don't think I am being unfair. I am just looking at the facts. I like Black Hawk.. but there are some negatives. The most important one is the small size of economic reserves which is why the stock has a low cash flow multiple. Next is the absence of large project that can be economic at current or slightly higher prices. I have no doubt that BHK will do very well if gold moves higher... (despite their current hedging strategy which limit 2002 revenus with 60% of production at $270). They will be there for many years and the company makse sense for investors who wish to have a small producer in their portfolio. But to say that it is the best gold junior available now (at $0.14-$0.15) is stretching it a bit, I think. Of course, if the stock goes back to where it was when you first suggested it as a great bargain, then you might be right again. I guess we all have our favorites.