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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Frank Pembleton who wrote (25610)	1/15/2003 8:17:45 AM
From: jimsioi	Read Replies (3) \| Respond to of 36161

Thanks Frank, re WHT, I needed that... As a proud current owner of WHT, and hopefully the same after I see the opening quotes this morning, I'm glad to see WHT aggressively expanding. We saw APA's acquisition greeted positively. It would be a fine set of affairs if this one and one much smaller acquisition announced by E&P Patina get thumbs up....Be the beginning of a good trend.

To: Frank Pembleton who wrote (25610)	1/15/2003 1:38:57 PM
From: mishedlo	Read Replies (3) \| Respond to of 36161

biz.yahoo.com Was wondering what the weakness was here. Let's look Wheaton River will significantly reduce its estimated cash cost per gold equivalent ounce from an estimated US$187 in 2002 to US$124 in 2003 (including by-product copper credits). Proven and probable reserves will quadruple from 0.8 million gold equivalent ounces as at December 31, 2001, to over 3.3 million gold equivalent ounces. Free cash flow will increase substantially due to the mature nature of the mining assets being acquired. "This acquisition fulfils our mandate of transforming Wheaton River into a premier mid-tier gold producer," commented Ian Telfer, Chairman and CEO of Wheaton River. "We have increased reserves, increased production and dramatically reduced our production costs." Lowers cost to $124 How can you not like that? WHT sold their columbia mine. Bet it is nowhere as good as this one. Right now the market does not seem to care for it, but does not seem to trash it either. One of the terms of the transaction will permit Wheaton River to defer the payment of up to US$70 million of the US$210 million total purchase price for up to 24 months. The deferred consideration will not require any gold hedging, and Wheaton River will remain an unhedged producer. Based on current metal prices, Wheaton River believes that cash flow from its existing Mexican operations and its newly acquired assets will enable Wheaton River to be in a positive net cash position by December 31, 2004. It appears that WHT has gone into debt and will now remain there for some time. That part of the news I do not like. It will put a cap on further aquisitions and they are now big enough for me. All in all I think I would rather have them stayed small and bought out buy someone else for $1.50. But they want to become a larger player. Time will tell how it works out. Thoughts? M