Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Canadian Diamond Play Cafi -- Ignore unavailable to you. Want to Upgrade?

To: austrieconomist who wrote (1767)	1/22/2004 9:37:28 PM
From: Letmebe Frank	Read Replies (1) \| Respond to of 16207

Lets hope he still has his eyes on Candian Diamonds. Thom Calandra is leaving CBS Marketwatch. I believe his mention of TAH Tahera resulted in most of the recent impressive gain. "We are writing to notify you of some unfortunate news regarding The Calandra Report. Effective today, January 22, 2004, we are terminating publication of The Calandra Report. Thom Calandra has resigned from MarketWatch.com, the publisher of the newsletter. To read the story which appeared today on MarketWatch.com detailing the circumstances surrounding Mr. Calandra's resignation, please click here: cbs.marketwatch.com We deeply regret the cancellation of this publication. Please know that our highest priority is to maintain your trust during this process. As a subscriber, you will receive a pro-rated refund for the remaining period of your subscription, calculated as of January 1, 2004. For those subscribers who signed up within 30 days of today, January 22, we will honor our 30-day full money back guarantee to you. We will be issuing your refund over the next several weeks, and you do not need to contact us in order to receive your refund. Thank you for supporting MarketWatch.com and subscribing to The Calandra Report. We at Marketwatch.com apologize for any inconvenience this matter may have caused you. " LMBF

To: austrieconomist who wrote (1767)	1/28/2004 11:31:34 AM
From: Letmebe Frank	Respond to of 16207

Interesting comparison by DSEL on SH - TAH vs SGF stockhouse.com In the past few days, there has been a fair amount of discussion on this forum about SGF vs TAH. I thought I would do a quick check and run some numbers to compare them. 1. Tahera (TAH) This info was taken from the www.tahera.com website. Total Resource= 7,100,000 tonnes @ 0.84 cpt Mineral Reserve= 2,600,000 tonnes @ 1.2 cpt Total carats produced over 8 year mine life= 3,115,000 carats Operating cost /carat= Cdn$56/carat Total project capital= Cdn$65,403,000 Diamond valuation= US$92/carat (WWW modeled diamond valuation) No. of shares fully diluted= 547,600,000 From the above info can calculate the following: Operating cost /tonne= (Cdn$56/carat x 3,115,000 carats)/2,600,000 tonnes= Cdn$67/tonne at 1.30 exchange rate equates to US$51.61/tonne Total project capital= Cdn$65,403,000 at 1.3 exchange = US$50,310,000 US$50,310,000 amortized at 10% interest over 8 year mine life equates to annual capital recovery of US$9,160,944/year. At an average mining rate of 2,600,000 tonnes/8 years= 325,000 tonnes per year the capital recovery equates to US$9,160,944/year / 325,000 tonnes/ year = US$28.18/tonne So cost/tonne= US$51.61/tonne + US$28.18/tonne= US$79.79/tonne Kimberlite value = US$92/carat x 1.2 carat/tonne= US$110.40/tonne Earnings calculation: US$110.40 - US$79.79/tonne= US$30.61/tonne earnings US$30.61/tonne x 325,000 tonne/year= US$9,948,250/year earnings US$9,948,250/year x 1.30= Cdn$12,932,725/year Cdn$12,932,725/year / 547,600,000 shares= Cdn$0.024/share Trading at 10 times earnings share price= Cdn$0.24/share TAH currently trading at Cdn$0.40/share Note that once the capital is repaid after 8 years, the remaining (lower grade) part of the resource becomes economic to mine. 2. Shore Gold (SGF) See my post of 10/28/03 stockhouse.ca Total Resource= 500,000,000 tonnes @ 0.18 cpt Mineral Reserve=? Total carats over 20 year mine life= 20,000,000 tonnes/year x 20 years x 0.18 carat/tonne= 72,000,000 carats Operating cost/tonne= US$9.00/tonne Capital cost= US$500,000,00 Capital recovery cost=US$3.00/tonne Diamond valuation=US$100/carat Mining rate= 20,000,000 tonnes/year for 20 years = 400,000,000 tonnes No. of shares fully diluted = 50,566,838 (as of Dec 31 according to Shore website) Kimberlite value= US$100/carat x 0.18 carat/tonne= US$18.00/tonne Cost/tonne= US$9.00/tonne + US$3.00/tonne= US$12.00/tonne Earning calculation: US$18.00 - US$12.00/tonne= US$6.00/tonne earnings US$6.00/tonne x 20,000,000 tonne/year= US$120,000,000/year earnings US$120,000,000/year x 1.30= Cdn$156,000,000/year Cdn$156,000,000/year / 50,566,838 shares= Cdn$3.09/share Trading at 10 times earnings share price= Cdn$30.85/share SGF currently trading at Cdn$1.82/share Which stock would you rather own? (LMBF answers SGF!)