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

To: tyc:> who wrote (2501)	3/18/2002 9:51:11 AM
From: Elizabeth Andrews	Read Replies (1) \| Respond to of 39344

I think that this is a very important discussion. I've said that you can compare the cost per ounce of a concentrate producer with the cost per ounce of a CIP mill IF you also compare the net smelter return (NSR) price for the ounce of gold from each mine. It is the spread between the cost and the actual amount received by the mine that you are interested in. The number of shares issued or the number of ounces produced by NGX are not important, for the moment, as this analysis applies to the revenue model of different types of mines. For NGX in 2001, I can calculate and defend two cost prices per ounce and two selling prices. The spread between each set is about $60 per ounce which is the amount that NGX received after all production costs, including the smelting charge. This is the important number. Go ahead.