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

To: Tom Frederick who wrote (8121)	1/14/1998 2:01:00 PM
From: Jan A. Van Hummel	Read Replies (2) \| Respond to of 20681

Tom, When Bre-X traded at $230/share do you know how many shares were outstanding? In other words what was the market cap at that time? This may give us a better feel as to how this equates to FL. Jan

To: Tom Frederick who wrote (8121)	1/14/1998 2:35:00 PM
From: Henry Volquardsen	Respond to of 20681

Tom, I am not disagreeing with anything you said just trying to show different possible angles. Bre-X got where it was because markets overshoot. Naxos is where it is now because the market still has a hang over from that. Yes the paltinum numbers will change a lot of these numbers but both your origional poat and my responses related specifically to the valuation of the gold not the entire company. What I was trying to do was show what a major mining firm would look at valuing the deposit. I like the dividend approach as well. As far as I am concerned I would be just as happy to never sell and trigger capital gains taxes. Just colect the dividend. But let's look at that valuation a moment. Assuming that once this is up and running it would be a very stable operation, basiclly an annuity. In this case REIT valuation is probably not to far off. Using my origional numbers again I had an assumption of an annual profit of $1 bln. That is $40 a share earnings. What kind of p/e do you want to use? I would suugest 15 for a valuation of $600. You would need a p/e of 100 to get $4000 a share. Under this approcah I think the p/e would be closer to 15 than 100. Henry

To: Tom Frederick who wrote (8121)	1/15/1998 1:59:00 AM
From: sh	Respond to of 20681

Tom, I'll tell you what's really frustrating. It's not trying to estimate the reserves, the price of PMs flowing therefrom, the value of the stock based thereon, etc. Rather, it's when you've finished a hard day of work (I'm not as fortunate as either Henry or Mark), and either SI or AOL freezes on you. I still have 30 posts to wade through and cann't do it! Anyhow, I love your tempered optimism. I'm sure it has already paid off for you and, notwithstanding DM's pessimism, I'm sure it will pay off much more in the not too distant future. I was looking forward to reading the other posts even at this late hour but I guess I'll have to be patient (a necessary virtue for any Naxos shareholder) and read them when the providers get their act together (and we thought Naxos was bad!). Keep up the good work! sh