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Gold/Mining/Energy : Gold and Silver junrs- portfolio -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (125)	4/6/2008 11:29:32 AM
From: Amark$p	Respond to of 328

Thanks, may need some good luck, sure did not take any offense from your comments. EPM simply needs to ramp up to its commercial production, which is easier said than done. If EPM can do this, then current share prices are a bargain (ignoring political risk). Recovery rates appear in line with the mine plan, the throughput is the problem. Assuming 10% share increase for a new PP (31M shares), my model calculates annual cash flow per share over $.40. Thus, EPM selling at under 3x cash flow even with a new PP dilution. So there is commercial production execution risk and political risk that appears to be more than offset versus the current stock price (after allowing for 10% PP).