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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 (43965)	7/5/2007 2:50:56 PM
From: tyc:>	Read Replies (1) \| Respond to of 78431

EPM and warrants (my view!) There are two leverages to consider here. There's warrant leverage; how the warrant price will react to a change in price of the common. I would say it's not very good as warrant leverage go. Then there's the stock price leverage to the price of gold. How the stock price will change relative to a change in the price of gold. IMHO the way to calculate that is to calculate the market price per ounce of reserves or per ounce of expected production. The lower this price the better the leverage, of course. The cost of producing gold has nothing to do with it, nor has cash in the treasury, Because undoubtedly the warrants will all be exercised, if you want to be realstic in assessing stock leverage to the price of gold, use the fully diluted market cap.