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

To: marcos who wrote (49506)	9/25/2007 2:11:33 PM
From: loantech	Read Replies (1) \| Respond to of 78409

In this case it was name and email only to register.But hey they just posted the slide show on their website: westerngoldfields.com I hear you on the FULL production numbers. More important for sure.These numbers still may point to early production off the main leach pads. Start in October and a two month cycle so maybe we get good Christmas news. <G> <First ore delivered to heap leach pad –150,000 tons under leach. Ore will be delivered to new pad in October> Ore on old pad and new pad deliveries ASAP. As far as the hedges I don't know if they have a plan to change them. Slide #13 does not seem to jive with me. They say they hedged 23% of recoverable but looks more like 40% to me of production ounces. I guess I like the hedge this way if costs are static 90% of expenses are covered annually. Puts in a good floor IF gold goes down from here.

To: marcos who wrote (49506)	9/25/2007 2:34:48 PM
From: tyc:>	Read Replies (2) \| Respond to of 78409

>>..the more significant point comes when they achieve targeted oz/mo imho As usual, I agree. I was just looking at Amark's figures for EPM. It appears that this will be achieved in 2009, when production of 157,000 ounces of gold is expected. However, do I understand that 50% of production is hedged ? If so that means that production sensitive to an increase in the price of gold would be only 78,500 ounces, Sensitivity to increase in price of gold. A $100 increase in the price of gold, would increase cash flow by $7,850,000 There are 440,000,000 (fully diluted) common shares. So the increase in cash flow per fd share would amount to $0.0175. If we anticipate shares trading at 10x cash flow, it appears that an increase of $100 in the price of gold would increase the price (or value) of each fully diluted share by 17.5 cents.