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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: akpirate who wrote (5099)	5/15/2002 9:40:47 AM
From: Claude Cormier	Respond to of 8010

<Even with an expected rise in the price of silver?? > All depends how high silver prices go... of course. But $5 silver will not be enough for CDE. They need much more to generate the cash they will need. On the other hand, if metal prices are trending higher... CDE will be in a much better position to refinance when other debentures come due.

To: akpirate who wrote (5099)	5/15/2002 1:28:33 PM
From: goldsheet	Read Replies (1) \| Respond to of 8010

Here's the short version of the game CDE finds themselves playing: They have to come up with $56M by December 03, another $66 by December 04, then $15M by October 05, a total of $137M This number was over $228M a year ago, but they almost cut it in half by issuing shares. Here's what they have for cash flow: 50,000 ounces of gold at a cash cost of $150, and 12moz of silver at a cash cost of $4.02. At current prices, the gold can generate $8M and the silver $6M, a total of $14M annually. So 7 quarters from now they may generate $25M cash flow and owe $56M. Higher gold and silver prices would help them but they should not depend on it, but instead continue to swap more shares for debt as fast as they can. If CDE continues their recent historical trend that $56M should get cut in half (or more) to $28M (or less) and they just might squeeze through (again)