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

To: Nostradameus who wrote (43556)	6/30/2007 11:17:51 AM
From: koan	Respond to of 78419

Market cap is a matter of shares out times price of stock. RNG was/is (maybe-lol) being offered and maybe sold at just 2 times earnings? (pretty low)' but Voisey Bay (I heard?) was bought out at 8 times projected earning per year? I think most thougth Inco paid too much for voisey, but then voisey gets up and running just as nickel goes parabolic, so the present owners have the last laugh-lol. So it seems values are all over the place. A lot fo value is based on speculation regarding future price of metal and potential for new discoveries. The old saying is a good mine should be able to replace reserves at least once. I like EPM wts now because of EPM getting ready to go into production in October and I feel the dollar has topped out and is ready to slowly fall and we are already starting to look at fall when mining stocks generally rise. Getting 3 to 1 leverage for 4 or 5 years when the stock is in the money is a bargoon it seems to me.

To: Nostradameus who wrote (43556)	6/30/2007 12:28:24 PM
From: AuBug	Read Replies (1) \| Respond to of 78419

EPM valuation, my naive approach of looking at. If they have $160 million annual cash flow then lets say they are equivalently producing 246,154 AOP of gold at $650/oz. If we lowball the MC/AOP at $2,800 and they have 433,861,496 shares FD we get $1.59/share. If Mr Market values their MC/AOP more in line with low cost gold producers that MC/AOP could increase to $6,901 (see earlier link below) giving $3.92. That's based on the start up production rate for this Fall'07. According to their slide 26 they going to produce 149,000 oz-Au and 26 million lbs-Cu. They'll have debt and a hedge to pay off. Exploration may expand the resource. Buying the EPM.wt.b's (21-Mar-2011, c$1.55) at c$0.51 implies over a 4.5 bagger for the warrants. The a's have less retur and a year less time. I'm bidding on the b's. europeanminerals.com Message 23651351 europeanminerals.com