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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: jackjc who wrote (18156)	8/14/2006 9:29:11 AM
From: aknahow	Respond to of 78409

Thanks I agree that those providing the funding can use any base case pricing they want. I believe, however, that the company misleads shareholders when it does not provide them with calculations using current pricing or even the average for the prior year and then provide results for prices 25%, 50% and 75% lower than base case. Given the short payback period of 3.5 years even at the ultra low prices used by CZZ the fact that production will run many years into the future is not sufficient justification for using historical long term average prices. Shareholders should be made aware that if current prices hold for one year of production payback could be as low as 12 months. Showing what the results would be if prices fell 50% and 75% would make all aware of the risk.