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Gold/Mining/Energy : Oil Sands and Related Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (4959)	12/15/2005 1:51:48 PM
From: Taikun	Respond to of 25575

D, Good point. Depends on interest rates and SAGD costs. In a high interest rate environment with low NG prices there should be no premium for new mining projects. Mining has a high CAPEX. Also, if NG substitutes work, the basis for a premium diminishes. (THAI, nuclear, coal etc) In the current low interest rate high NG environment, I would agree. I would also agree where a play like SU has spent much of its CAPEX on its mining project at lower prices. However, if there are innovations to the mining procedure that lower op costs in the future, then a new mining op might be more efficient offsetting the higher CAPEX. Those caveats mean to me there is no one pure oil sands metric. D