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

To: Claude Cormier who wrote (62744)	1/5/2009 4:44:31 PM
From: tyc:>	Read Replies (1) \| Respond to of 78425

Thanks Claude. Their revised plans include a new feasibility study late this year. Certainly the old feasibility study did not contemplate gold at C$1050 nor copper at the current C$1.75. However, whatever the "strike" prices that will induce lending, it's a pretty cheap "option" even today, I think. Message 25237921

To: Claude Cormier who wrote (62744)	1/5/2009 5:43:45 PM
From: hank2010	Read Replies (2) \| Respond to of 78425

"but since this global collapse could last 10 years," Quote from Seymour Schulich interview today (complete intv. posted on Tiger board). "I am amazed at what's happened to the commodities, how quickly the prices have come down. But we are destroying some [energy] projects that take five to seven years to build so that when the demand does pick up there will be enormous shortages, and the price levels on the next cycle will make past levels pale by comparison. You'll get US$300 oil, US$50 nickel and US$10 copper. But I don't know if next time will be three-four-five years away." I am getting old, Claude, so I have to hope Seymour is more correct than you!

To: Claude Cormier who wrote (62744)	1/17/2009 5:27:34 PM
From: tyc:>	Read Replies (1) \| Respond to of 78425

>>"The IRR appears to come down near 10% with current copper price which is usually below the 15% threshold". FWIW: The original feasibility study expected an IRR of 18.1% at base rates. Please see: Message 25332302 If I am correct in believing that even with the current low copper prices gross revenue would still attain near parity with original expectations at the base rate, IRR should be maintained too. Perhaps because of reduced cash costs of production and maybe of capital cost too, it would currently be even higher than the base rate. Should we ignore the increase in gold prices and the lower C$, and choose to dwell on the low price of copper ?