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

To: russwinter who wrote (8620)	3/12/2003 9:59:23 AM
From: jrhana	Respond to of 39344

<metallurgical coal> what is that? It still seems strange to me to see investment in (at least select) commodities and gold as a bet on deflation. The hooker here could be a an underestimation of the ability of the US Govt's printing press to print dollars. Maybe this guy could be right for some of the wrong reasons. Message 18426739 mips1.net

To: russwinter who wrote (8620)	3/12/2003 12:01:37 PM
From: juniorgoldman	Read Replies (2) \| Respond to of 39344

If you take Friedland's comment in the presentation that the company would have US$1.75 mil in cash flow per day based on the production scenario he envisaged, put that into C$ (1.55), multiply it by 365 days of the year, and then assume that for construction, etc. the company will have to issue more shares and will have 300m FD by the time this thing produces, it gives you CFPS of more than $3 per share. If you take into account the long mine life, you could see the company trading at 15X cash flow which would mean that this could be a $50 stock. That doesn't include finding more on these grounds or higher metal and gold prices. Am I out to lunch or are these kinds of prices a possibility in your mind as well?