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

To: tyc:> who wrote (2505)	3/18/2002 10:45:40 AM
From: Elizabeth Andrews	Read Replies (1) \| Respond to of 39344

This is not a backward looking analysis. It is using historical numbers but that's all. The spread changes if the price of the commodity changes as long as costs don't change by the same amount. I'm going to make this real simple for you. I'll use NGX, but it doesn't matter, the analysis is the same for all mine revenue models. You have to get to the net smelter return for each mine. That is the revenue that the mine receives. In fiscal 2001 NGX produced and sold 277,000 oz of gold at an average price of $271. Revenue should be $75.1 million. They also produced and sold 66 million pounds of copper at an average price of $0.72. Revenue should be $47.5 million for a total revenue of $122.6 million. But NGX only reported 2001 revenue of $98.4 million. What happened to the $24.2 million? Your turn.