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

To: russwinter who wrote (2646)	1/4/2002 10:16:16 AM
From: Claude Cormier	Read Replies (1) \| Respond to of 4409

Russ, I still think that BAY is undervalued, so I am not selling yet. Although, as I suggest in last week alert, taking some profits never hurts. So I can understand your decision. You must keep in mind that the silver market is very small. The market think that silver will eventually explode in price due to a squeeze or physical shortfall. So they are loading up on silver stocks. A premium has built in many silver stocks like PAAS and SSRI. Not so yet with BAY. With only 4 or 5 silver candidates available on the market, it only make sense that they will eventually all sell far above fair value. The other factor that is changing the picture for BAY is the higher silver recoveries. It is no longer 70% for the high grade, it is now 80% plus. Also, it now appears that dilution will be limited thanks to the much higher stock price. You know the economics for BAY. If they really make $1.50 per share in year 1, the stock price will have to reflect this. For now, a consolidation in the $2.75-$3.00 level make lots of sense. But I can see another break-out to new highs as we approach the delivery of the new feasibility numbers. Higher silver prices would also do the trick. BTW, got the confirmation today from Sprott. They have been buying BAY in the last month for their fund.

To: russwinter who wrote (2646)	1/4/2002 12:36:53 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 4409

Russ, Here is what the market is paying for silver stocks: Pan American Silver (36M shares) Cap: $C241M Silver eq. Resources/share: 16.6 oz Silver eq. Reserve @$5ag/share: 4.19 oz Silver eq. Resource/$ of market cap: 2.5 oz Silver eq. Reserve@$5ag/$ of market cap: 0.625 oz * I am excluding the 20% PAA has in Dukat. Silver Standard (30M shares) Cap: $128M Silver eq. Resources/share: 13.7 oz Silver eq. Reserve @$5ag/share: 0.00 oz Silver eq. Resource/$ of market cap: 3.2 oz Silver eq. Reserve@$5ag/$ of market cap: 0.00 oz Corner Bay Silver (15.7M) Cap: $46M Silver eq. Resources/share: 9.1 oz Silver eq. Reserve @$5ag/share: 8.21 Silver eq. Resource/$ of market cap: 3.0 oz Silver eq. Reserve@$5ag/$ of market cap: 2.83 oz BAY with 10M shares issued at $2.50 for production financing Corner Bay Silver (25.7M) Cap: $77M Silver eq. Resources/share: 5.4 oz Silver eq. Reserve @$5ag/share: 5.1 Silver eq. Resource/$ of market cap: 1.8 oz Silver eq. Reserve@$5ag/$ of market cap: 1.7 oz The important number here is the number of ounces in reserves per dollar of market capitalization. On that basis, BAY is almost 3 times cheaper than PAAS. Factor in projected operating cost and BAY is 6 - 8 times cheaper than PAAS. * Reserves are based on current data and pre-feasibility studies published by the companies. So BAY doesn't have reserves yet according to US regulations. By the same way, PAAS should have no reserves as their silver is not currently mineable at a profit.