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Gold/Mining/Energy : Naxos Resources (NAXOF) -- Ignore unavailable to you. Want to Upgrade?

To: Art Pesner who wrote (8120)	1/14/1998 1:59:00 PM
From: Henry Volquardsen	Respond to of 20681

Art, I just used 6% as a plug number. Also I tried to address the risk element by setting an upfont discount of 50% to value the reserves. There are no cut and dried rules for this but when a major looks at an exploration company this is a big part of their analysis. Henry

To: Art Pesner who wrote (8120)	1/14/1998 2:22:00 PM
From: Jan A. Van Hummel	Read Replies (1) \| Respond to of 20681

To Tom, Tom, I found that Bre-X had 215 mm shares outstanding. This was after a 10-for-1 split as I recall. So the $230 you mention would have been a pre-split price putting the market cap at abt $5 billion based on an estimated 70 mm ozs of reserves. Just for the sake of argument, mind you this is just playing the numbers loosely, if Naxos would have a similar level of proven reserves, one can argue that with abt close to 40 mm shares out there (with the Johnson option exercised) we would be looking at abt $120/share for Naxos. I would also argue that given the high Au-content at FL it will be easier and less costly to extract larger amounts of gold, which should enhance Naxos' value even further. Now, if the proven reserves are even larger than the 70 mm Bre-X claimed I leave the extrapolation to you. JMHO Jan