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

To: peter snowdon who wrote (3491)	5/3/2002 8:41:04 AM
From: russwinter	Respond to of 39344

Good EV analysis, close to how I evaluate these. You might work in the money wts and options too. Just be sure to add cash proceeds to balance sheet. The next step would be to look at the district potentials. Mexico tends to have expandable unexplored districts.

To: peter snowdon who wrote (3491)	5/3/2002 8:53:34 AM
From: tyc:>	Read Replies (1) \| Respond to of 39344

I applaud you for using your own common sense in your comparison. That is more important than other people's comments on it. Sorry I know nothing about WRM's mines. However, I would like to make a couple of observations about Kemess. A significant portion of NGX revenue is derived from copper. The copper revenue is applied in reduction of cash costs. The company has said repeatedly that they expect to produce 295,000 oz of gold this year, and that with copper @ .70c per lb, cash costs will be $176 per oz. Are you justified in using 260,000 ounces at a cash cost of $177 ? Will copper in future be less than or more than .70c per lb ? Moreover, later this year will see a final feasibility study on a project that could introduce higher grade copper ore from the Sustut deposit of Doublestar. According to Doublestar this could increase Kemess copper production by 40%. NGX in a news release announcing the JV, has said that this project could well go into production in the summer of 2003. What will this do to the cash costs of gold ? doublestar.net