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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ldo79 who wrote (22876)	12/5/2004 8:15:42 PM
From: jimsioi	Read Replies (2) \| Respond to of 110194

Ido079, WHT / GG is certainly a start.. Maybe this merger won't drag the shares into the dirt and muddy up the waters for miners share any more than they already are.... Highlights of the combined company would include: Production - 2005 gold production expected to be in excess of 1.1 million ounces at a total cash cost of less than US$60 per ounce. (MY NOTE: Investors will be paying about $5000 per oz of production when buying the new combined shares...) Growth - production expected to grow to 1.5 million ounces of gold by 2007. Balance Sheet - strong balance sheet with over US$500 million in cash and gold bullion, with no debt. (MY NOTE: GG shareholders get their recently partially established bullion holdings diluted or exchanged for WHT shares...) Reserves - proven and probable reserves of 10.5 million ounces plus additional measured and indicated resources of 9.5 million ounces as of December 31, 2003, all of which are unhedged. (MY NTOE: $500 per proven and probably oz is what investors will be paying for the new GG/WHT... $250 per oz if you throw in the measured and indicated... In as much as some of GG's metal is above ground in ingot form a somewhat higher than normal valuation would be justified.) Market Capitalization - expected to be approximately US$5 billion. ----- Reading that the premium for WHT is only 7% one can hardly make the case that this is especially bullish for miners over all...but we'll see...