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

To: Bob Walsh who wrote (4854)	1/24/1998 9:41:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 14226

Bob: Only one thing, let us forget for the time being about Twifords recovery rates, maybe these are right maybe these are not, these are certainly not reproducible on a day after day basis. Right now, I am extremely busy with a little private entreprise I am putting together, so I will not be able to put together a cash flow analysis and value the company based on its discounted future cash flow. But if someone is ready to do that, a model could use the following parameters: Strat with current production rate and double it every three months until you get to 200 tons per day. Assume that the cost of extraction goes from $1000/ton at current rates and decrease to $500/ton at $200 tons per day. Take an SG&A value going form their current burn rate (probably 80% of sales at the initial production rate) until it reaches a value of 5% of sales at 200 tons/day (that might even be high). I would also lob out some 5% of sales for various royalties to the original land owners I have no idea if this is indeed the case or whether these owners simply got stock and that is it). AAssumes standard tax rates of 45%. And build a spread sheet. Then you take the earnings and discount these 10% per year and you get the current fair valuation. Try also 12% and 15% since some rational people actually use models for valuations that includes discounting at 3 times the prevailing "secure" long term rates for "risky propositions". Zeev

To: Bob Walsh who wrote (4854)	1/24/1998 11:07:00 PM
From: JACK R. SMITH JR.	Read Replies (1) \| Respond to of 14226

Bob, Why do you think that Zeev has any special understanding of GPGI? Jack

To: Bob Walsh who wrote (4854)	1/24/1998 11:23:00 PM
From: Chuca Marsh	Respond to of 14226

Bob and all, I have to try to answer Jack in the special GPGI understanding! Digits...it is all in the New England Up Country Digits. First the primary part of the Zeevazeedi Formula ( he told me a year ago). Then the second part, wait a minute it will come to me! First, one takes off both gloves, that is one pair in up-country talk and sometimes figuring is tried to be started without this function fully performed, but it must be! Then the boots and sock, that will now allow for Digital calculations above 10 for Price Earnings Ratios Calculations! ( Sigh, but no more than 20 ( TWENTY!). Chuca10toes10fingers Bumpah-Stickah!Apply with both hands and both feet!