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

To: Elizabeth Andrews who wrote (2499)	3/18/2002 7:15:21 AM
From: tyc:>	Read Replies (1) \| Respond to of 39344

I would be happy to discuss this further, if it is not boring to the thread. Let's first agree on the point at issue. .The company has said that there are 129,000,000 fully diluted shares (plus long term $3.00 warrants which I would like to be ignored for the purposes of our discussion). .The company has also said that in 2002 they expect to produce 295,000 ounces at a cash cost of $176 if by product copper is priced at $.70 cents. This is the kind of statement that all mining companies make. The point at issue is whether an investor can use such published figures to compare the "leverage to production" between one company and another. You say that one cannot do so, because a company that produces its gold in concentrate has unique costs beyond the costs included in cash costs; OR that they do not receive full market price of the gold contained in the concentrate, which amounts to the same thing. Do you agree that that is a fair statement of the issue ? Would anyone else care to pronounce on the subject before I proceed ?