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

To: Elizabeth Andrews who wrote (2488)	3/17/2002 1:11:23 PM
From: tyc:>	Read Replies (1) \| Respond to of 39344

I may sound like a neophyte, but actually I have been in resource stocks for over 35 years.... hence my preference for producers. And I have a long term love affair with long term warrants. northgateexploration.ca Page 27 of that link states "129 million fully diluted shares". I think the figure you quoted probably includes the $3 LT warrants, which I don't think are really dilutive for our purposes. I saw that figure in the recent quarterly report and it raised my eyebrows too ! All the points you mention are very valid, and indeed they do temper my zeal. Nevertheless, I simply parroted the figures for year 2002 that they gave us; production for the year 295,000 oz and cash costs of $176 with by-product copper at .70c. My interest is at the margin. No matter how profitable or unprofitable the operation, an increase in metal prices will provide the same improvement. That is what leverage is about surely. And I thought that was the essential point; what happens to profits if metal prices improve. The less profitable the operation now, the more spectacular the improvement afforded by the leverage. I apologise for pressing my point when you have told me so clearly that it has little interest.