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Gold/Mining/Energy : ZINC The base metal. News and Views. Symbol Zn -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (508)	9/12/2003 4:57:21 PM
From: zinc-man	Respond to of 3270

S-O, Great calls on BWR and BHK... EZM ( Euorzinc ) is on a tear... 4+ bagger... ZM

To: Stephen O who wrote (508)	9/12/2003 5:07:37 PM
From: John Sladek	Read Replies (1) \| Respond to of 3270

Stephen, As of the last quarter, BWR was still losing money, although it was cash flow positive. The purchase of the mines in Quebec was more-or-less a disaster, which does nothing to create confidence in the how the company is being run, or the people that are running it. Furthermore, as of the last quarterly report, BWR indicated that it would be unable to pay its debt back, based on "current prices". sedar.com Net debt (total debt less cash) decreased by $26.7 million, from $72.2 million at the end of December, 2002 to $45.5 million at the end of June 2003. The balance of the credit facilities is due on January 2, 2004. At the current metal prices, cash flow from operations is sufficient to meet the Company’s operating requirements but will not be sufficient to repay debt when due. The debt will require restructuring or extension. In July 2003, the Company repaid US$5.0 million of the term credit facility with a portion of the proceeds from the sale of the Lapa property. Discussions are ongoing with the Company’s lenders to allow the Company to use the balance of the funds for working capital purposes. Until this is resolved, the cash has been set aside and is included in the balance sheet as restricted cash. The advance royalty payment of $1.3 million (US$1.0 million) is classified as a deferred royalty on the balance sheet and will be brought into income when earned. Obviously "restructuring" could involve conversion of debt to equity, i.e., dilution.