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Gold/Mining/Energy : Pacific Rim Mining V.PFG -- Ignore unavailable to you. Want to Upgrade?

To: rdww who wrote (7993)	12/9/1997 10:19:00 AM
From: Shirley Owen	Read Replies (1) \| Respond to of 14627

Hi rdww, You would have to value the shares and cash at $30.00 per share. That was the offer and the value would be no more and no less. So the amount paid for the property would be 36.3 million x $30.00 =$1,089,000,000 To do the calculation you need: Purchase Price Drilling Costs after Purchase Mine Development Costs Mining Costs per ounce Taxes Etc. That would give you the total expenses Then you would need to know Total Ounces of both gold and silver Recovery Value Estimates for Gold Recovery Value Estimates for Silver This would give R.O.I. Because the price of gold and silver is a moving target, and the additional ounces that may be added would also add value, it is pretty hard to get an actual picture of the profitability for Barrick. But a quick thumbnail estimate such as you did, gives some idea of where it stands right now. I'm sure that Barrick will have a better picture once they actually start to mine. They also got those 45 or 47 (can't remember the exact number off-hand) other properties as part of the package. I understand that they have been working on some of them, and according to Barrick, some of them look highly prospective. Makes it tough to get an actual handle on the value to Barrick at this stage with all the unknown factors. Cheers Shirley