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

To: Supervalue who wrote (29961)	6/15/2004 7:14:48 AM
From: Salt'n'Peppa	Respond to of 39344

FCO cobalt project - any opinions? I am interested in what this eclectic and knowledgeable group thinks of FCO. Canadian company, Toronto listing, good management team, no debt, $11 million cash on hand, Canada/US projects. I have a little FCO, but may buy more depending on results of the current drilling program. The share price indicates good "value investing" to me. formcap.com EBIDTA discounted cash flow analysis averages more than US$72 million per annum, for 10 years, (using $26/lb Co). Proven, Probable Reserves and Inferred Resources of the project currently stand at 3.15 million tons @ 0.609% Cobalt, 0.49% Copper and 0.019 opt Gold. (This includes Reserves of 1.26 million tons). Again, utilizing $26/lb cobalt (cobalt spot price currently $26.90/lb), an 8% discount rate, pre-tax, producing cobalt chemicals, this infers at Net Present Value of over US$368 Million, (CAD$506 million) with an Internal Rate of Return of 165%. The potential to dramatically increase reserves is excellent with a district potential of 50 million tons. The deposit remains open at depth and along strike and only 4 of 20 distinct target zones were currently assigned reserve-resource figures and of those, only two were used in the Reserve & Resource calculations in the current mine plan.