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Gold/Mining/Energy : WWS.T World Wide Minerals -- Ignore unavailable to you. Want to Upgrade?

To: kingfisher who wrote (302)	1/5/1998 11:30:00 PM
From: tango	Respond to of 784

Although that sounds resonable it is perhaps a little to positive in the short term. In regards to the financing, it is not an open line of credit as such. All monies drawn under the deal must be secured by either uranium sales contracts or the raw material. So far 12.7m US has been used backed by the 45m in sales already in place, and the uranium they are buying in the open market. I doubt the differential at which they are buying and then selling the uranium at is 30%.You must understand that a lot about being successful in this business is about the customers confidence in your ability to deliver product. Thus a young uranium company will buy uranium in the spot market to build its inventories while it builds out production. that way they can build their customer base and get a reputation as a reliable source of product. Often the margins in this process are not great. Look at the sale to Taiwan power for 100,000 pounds. they sold for about 9.70. I'm sure they didn't make much off that deal. The firm refers to it as "BUILDING AT STRATEGIC INVENTORY"