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Gold/Mining/Energy : Bema(Bgo) and Arizona Star -- Ignore unavailable to you. Want to Upgrade?

To: Tom Cat who wrote (8220)	11/1/1997 11:33:00 PM
From: Terry Swift	Read Replies (1) \| Respond to of 10482

TC: Have you looked around at other exploration companies to see what the life cycle of these companies is like? Do you have any idea what the fate of an exploration company is that has a deposit that can't be developed, either because its too small or not economical enough to attract a major company to finance and develop it? I am very interested in hearing what you and any others on this thread (especially the ones who are contributing to that idiot attempting to file a class action lawsuit to negate the Placer deal) think the alternatives are. What would you do, given the market we're in? Also, give me your estimate of the value of these companies with no major JV partner. If you think Star's price is bad now, just where do you see it without a major involved? Hey, I am also disappointed in where I'm at with these stocks. Six months ago I fully expected them to be several times higher than now and with a hefty profit from a sale of Star. But I'm also a realist. Given the market environment we're in, I think the Placer deal is a good one. I can't blame Bema management for Bre-X, the POG, and a bear market. I believe they have done the best they could with the hand they held. When Bema was pushing US$9.00 and Star C$13.00 in March of this year, I didn't even consider selling because my analysis told me both stocks were nowhere near fully valued. Well, guess what? If my crystal ball had been working I would have sold everything and been loading the boat again right now. The market has trashed them, a major brokerage firm, Nesbitt Burns, is selling them with both hands, and gold is $70 lower. With Placer involved, these stocks will be back; I believe to new highs after production from CC begins and maybe sooner depending on the POG and what is found on the Aldebaran and Quebrada properties. Without Placer or another major JV partner, I'd be looking to sell on any rallies and get out because the chances of developing Casale would be remote and would take 10-15 years, instead of 4, if Bema had to do it in steps with internal financing. Without a major involved to finance and develop CC, Star stock is wallpaper for a long, long time. Terry