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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (20826)	3/25/2003 11:41:06 PM
From: Ed Ajootian	Respond to of 206131

BCBob, Yes interest is especially important for WTO due to their huge leverage. Their per-barrel costs break down like this (all C$): $3.30 to build the mine and other initial cap ex, $12.50 operating costs, $6 interest expense, and $1.40 maintenance cap ex. So they need US$16 oil to break even. Given the world's current geopolitical problems and OPEC's now-proven resolve, its pretty hard to conceive of oil ever going below $16 for any great length of time from here on. Interesting that you used to work in the industry. If I may ask, what did you do and who did you work for?