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

To: Claude Cormier who wrote (314)	10/25/2001 3:41:24 PM
From: russwinter	Read Replies (1) \| Respond to of 39344

AAS will have 20.9 million shares out after their financing. With stock at 20 cents, that's US2.7 million, with 900K US cash. NGT will have 19.8 million after the PP's. With stock at 14, that's US$1.75 million, with 675K US cash. They will both have the same 50/50 split obligation of the US$5.4 million (if paid before 12-04) owed to PDG, so each assumes $2.7 million debt. NGT valuation is cheaper (1.1 EV vs 1.8 EV for AAS), however AAS is obligated to spend about US$1.5 million for the 50% earn in. Then NGT gets an extra US$1.3 million of the production. I don't see that as the same side of the coin, as when I add those numbers I come up with US$4.6 AAS (will need to underwrite equity) vs. US$1.1 NGT. In the final analysis they are both bargains, but NGT is absurdly so. Do you pay a AAS premium for Chester Millar being the president? Maybe some, but why, as NGT still gets the benefit in the field? And if it's deal making, I'd rather have Albert Matter for that. Albert appears to like to spend on IR, but I don't think that justifies a major discount. AAS's other property? Not that familiar with it, but doubt it justifies this spread.