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Gold/Mining/Energy : Global Platinum & Gold (GPGI) -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (4853)	1/24/1998 9:09:00 PM
From: Bob Walsh	Read Replies (3) \| Respond to of 14226

Zeev, yes the equation should have been: $1,800 times .2 times 500,000 = $180 million divided by 22.5 million shares = $8 per share. This is a valuation based on the asset (enhanced ore at Hassayampa only). If you want to do a valuation based on cash flow then you have to apply a multiple (between 10 and 20) times the EPS. If we look at risks, they are not too bad: (1)We do not need to worry about permits - the ore is in piles, (2) we have AuRIC that has put a value on the PGMs that they refined at $1800, (3) improved processes should be able to raise the value of the refined PGMs since the $1800 appears to be only a 16.6% recovery versus Twiford's lab recovery, (4) increasing the output of dore and/or anode slimes is not rocket science. Regards, Bob