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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: baystock who wrote (74)	10/10/2001 10:11:19 AM
From: Stephen O	Respond to of 39344

'So why is first quantum share price not reflecting that ? It is not at multi-year lows and there is still risk until that happens.' Read the news releases of First Quantum, go to their web site and see the amazing progress they are making. This is a growth story, new mines, new properties. This is not Phelps Dodge. Here are the comments of Canaccord about the recent news release about Lonshi. Strong Buy : First Quantum Minerals Ltd (FM : TSE : C$2.60 : Issued 43.0M) Mike Jones 20 7518 7365 For the first time, First Quantum releases resource data on its new Lonshi deposit Lonshi now has a measured and indicated resource of over 650 million pounds of contained copper at a very high grade of 5.75% Lonshi is to be processed through Bwana Mkubwa. The effect of the high grade means that production at Bwana Mkubwa is expected to actually increase to 30,000 tonnes per annum of copper from the current 10,000 tonnes per annum, but that the headfeed throughput rate will have to be reduced. An internal feasibility study is looking at the net effect of this (reduced throughput offset by mining, transport, crushing and grinding, and increased back-end power costs), but we believe that it should not greatly affect unit operating costs Under this scenario, Bwana Mkubwa should be able to produce the marginal 20,000 tonnes per annum of copper at pretty much the same cost of around $0.40 per pound, which is the approximate cost prior to acid credits at Bwana Mkubwa. The additional 20,000 tonnes per annum 44 million pounds) at a margin of around $0.30 should be capable of generating additional cashflow of around US$15 million per annum from late 2002, paying back the estimated capital bill of between US$15-20 million in a little over a year