Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Corner Bay Silver (BAY.T) -- Ignore unavailable to you. Want to Upgrade?

To: Zardoz who wrote (2625)	1/3/2002 3:38:04 PM
From: Claude Cormier	Read Replies (2) \| Respond to of 4409

Hutch, I think we agree on a few things. That is good. <Not if the company is required to come up with millions to finance such a deal.> I agree with you. But that is the good part of BAY's story. CAPEX are the lowest in the industry for that kind of deposit. That is why the rate of return of the project is 55%. With such a rate of return, do you think they will have a problem to find the millions they need. <Not if the company will take years to get into production.> Well it is not years, it is months. Feasibility study will be ready in two months. Financing in 2Q2002 and production in 4Q2003. <Not if the price of silver is likely to fall.> All depends how low is low. BAY will be producing 35 millions ounces of silver in its first two years of operation at a cost below $1.50 per ounce. Do you think they can be very profitable with these numbers even if silver goes to $4. <No, I don't think BAY is worth this price.> Current economics suggest a net profit of $1.50 per share in year one of operation in 1993-94. What price BAY should be trading ? <Claude, have you ever been involved in a pump and dump before? > For you info my friend, I am not selling.

To: Zardoz who wrote (2625)	1/3/2002 3:47:42 PM
From: russwinter	Respond to of 4409

<No, I don't think BAY is worth this price.> I no longer consider BAY grossly undervalued. However, US$29 million market cap for an advanced stage project with the leverage and cost structure this one has, is not excessive. <will take years to get into production> If it was already in production it would be worth closer to a hundred million. That's the next payoff, although I would prefer an outright sale (now THAT would be an interesting outcome for a short seller <VBG>). <Not if the price of silver is likely to fall> You'd bet on a significant drop in POS from these levels? I can think of better bets. How about HIGHER silver prices? But hey, short this bad boy. We need more fuel for this fire. The willingness of the doubters to come out as soon as a name gets a little hot, should suggest to true believers how much upside is in these names: very encouraging indicator. Wish I'd kept all of it now after hearing this drivel, but at least I still have half.