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

To: David Culver who wrote (11276)	7/13/2006 12:24:57 PM
From: upanddown	Read Replies (2) \| Respond to of 25575

David, yes, COS is certainly more of a bird in hand than two in the bush like CLL and PBG but COS current production is already baked into the stock price. It seems to me that they also have risks going forward. The cost inflation and environmental opposition seem to be directed at these large surface mining operations rather than in-situ and could put a crimp in future expansion plans for COS. Let's face it, those strip mining operations are kinda UGLY. My oil sands split is approx 50% COS, 30% CLL 20% PBG. I don't see how anyone can say Gusella is just blowing smoke after that press release. These guys seem to be delivering on everything they promised. I especially liked this part of the CLL release. The company wishes to distinguish its Great Divide project from the large mining projects which have been the topic of extensive press commentary in recent days and weeks. SAGD projects, such as Connacher's 100 percent-owned Great Divide, will have much shorter lead times with much lower overall capital requirements, smaller vessels and greater efficiency in comparison to the announced large-scale mining ventures. Many of the popular press articles and some comments on rising costs in the oil sands by some more engaged analysts or investment industry spokesmen on rising costs in oil sands development have failed to make this distinction. They have also failed to identify and distinguish the different comparative operating cost regimes for SAGD operations and mining. SAGD plants will increasingly be accompanied by an emphasis such as that adopted by Connacher, emphasizing a modular approach to plant construction. SAGD plants also have a smaller environmental footprint and should be able to avoid many of the diseconomies which may characterize more remote and larger scale mining operations.