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

To: No BS here who wrote (18089)	8/26/2003 6:57:39 PM
From: Little Joe	Read Replies (4) \| Respond to of 39344

I have mentioned Jaguar Nickel, JNI.to (formerly Chesbar Resources several times on this thread. They have a deposit comparable in size to CANICO which is a thread favorite and about 2x the number of outstanding shares. CAVEAT – I OWN THI S ONE . The stock closed today at .60 CAD. See chart bigcharts.marketwatch.com The story here as I understand it is that the metallurgy of this project was thought to render it uneconomic. The company hired an expert who apparently was successful in developing an extraction technique capable of recovery and at a lesser cost than CANICO. I have discussed this one with Jim Steele who feels that this expert can make it happen. The company has built a pilot plant to test the recovery methods and as I understand the situation this is going on now. In the last two days the stock has moved from about 42 cents to 60 cents on no news, but I suspect the tests are going well. Here is a good summary of the situation from a stockchart poster. stockhouse.com <<Hi Guys, Just wanted to share with you this comparison with Canico: TOTAL (INFERRED) JAGUAR Million tones 170.0 Grade - Nickel 1.48 - Cobalt 0.08 TOTAL (INFERRED) CANICO Million tones 197.5 Grade - Nickel 1.72 - Cobalt 0.11 The above information for Canico is based on their latest drilling results (August 13). From the Minvest report, we can get this additional information (pre-August 13): JAGUAR Operating Cost U.S. $ per lb: 1.00 Capital Cost U.S $millions: 100 Product: Hydroxide CANICO Operating Cost U.S. $ per lb: 1.10 Capital Cost U.S $millions: 450 Product: Matte So, in summary, Canico has a deposit richer than Jaguar, but a bit more expensive to exploit than Jaguar. Jaguar estimated cost of capital was only $100M, versus Canico $450M (which should be higher as a result of a larger deposit). But, even after Jaguar latest run up, Jaguar is still trading at only a fraction of Canico: JAGUAR # shares o/s: 60M Price Ser Share: $0.50 Total Capitalization: $30M CANICO # shares o/s: 25M Price Ser Share: $12 Total Capitalization: $300M From the above comparative analysis, it is important to note Jaguar is due to report soon the results of its 2003 Exploration Drilling Program. Ten Times JNI actual level is not out of sight… Feel free to add your comments Martin >> I believe that the upside here is at least as good as CANICO. Since Canico has about 40% of the number outstanding shares as Jaguar Nickel. I would not expect Jaguar to trade at the price of CANICO, which is about $12.00 CAD per share. But CANICO has a total capitalization of 300 Mill as opposed to Jaguar’s 30 Mill. to bring Jaguar up to a 300 Mill CAD cap Jaguar would need to trade at $5.00 CAD per share. If we accept as many on the thread do that CANICO is under valued, then likewise, Jaguar is far more undervalued. I think this stock is a legitimate 10 bagger and if the deposit expands it may be a portfolio maker. It is my favorite stock at the moment and I am prepared to add on any correction. Do your due diligence on this one and try to get on board if you can. I think it’s a winner. Little joe