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

To: Canuck Dave who wrote (12865)	6/20/2003 1:45:31 PM
From: Rocket Red	Read Replies (2) \| Respond to of 39344

Gold Tumbles as US roars back to life :)

To: Canuck Dave who wrote (12865)	6/21/2003 9:46:18 AM
From: russwinter	Respond to of 39344

<What's your take on the CDU (Cardero) situation?> I glanced at it at one point. However, one of the first things I do is total up what the market is paying for plays. In CDU's case, when the stock was at two bucks, mkt cap was US$30m, minus the 2.5m cash they have, means EV is 27.5m (). Even after the "distribution period" (read my prior generic posts on this topic) when the stock traded at buck fifty, that's $20m EV. To make a long story short, a $20m EV seemed pretty steep to pay for promising trenching and sampling results. Since the market only pays $10-$15 Au equiv. for some superlative advanced stage deposits (for example: GBU's Rosia Montana, AGI's Multatos, CBD's Meadowlark, MNG's Hope Bay, WTZ's Penasquito, GBG's Ivanhoe and Burnstone) around the world, you are making a leap of faith that CDU's target has 1.25-2.0m Au eqiv. (or 100m Ag plus) low cost oz, before a drill hole has even been announced. As since when has any exploration drill project been that easy? My advice:leave a little more room for error (or to hang yourself), cause we're all going to need it on these grassroots plays. () Heck, that's the EV of the other stock (CAU) everybody here has been pooh-poohing, and they have 10m advanced low cost oz in the bag. All I have to do is watch them win an election next year <VVBG>. Message 19050702 Message 19048643