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Gold/Mining/Energy : Pacific Rim Mining V.PFG -- Ignore unavailable to you. Want to Upgrade?

To: Shirley Owen who wrote (8477)	1/27/1998 6:53:00 PM
From: David R. Schaller	Read Replies (1) \| Respond to of 14627

Shirley, In the for what its worth category; Like everyone I have been trying to figure out why our share price is so low. What can it be attributed to? Will increasing reserves by 38% be the answer? Do we need to get past the warrants? Bad PR???? This is one approach I've taken & the results are a little discouraging. At $6.10ag & $300au we have a resource that has a total value of $858,100,000 This is an increase of 24%. (gold is down but silver is up since last calculation) The GE is 2,860,000 oz. This roughly works out to Barrick @ 2,000,000oz & PFG @ 860,000oz. It would seem that only about $.50ca/share PFG can be attributed to anything other than cash. (Assume $.35us) Using 20,000,000 as the number of shares outstanding.. the total value is about $7,000,000. Divide this by 860,000oz & it works out to be about $8.13/oz au in the ground. Not a lot. Certainly not $50/oz or even $20/oz. Assuming these calculations are roughly correct..I think we can draw certain conclusions; 1)Increasing the reserve by 38% with the new resource calculation would only add $.15/share 2)Unless an increase in reserves raises the expectation that a mine will be built or a buyout is more likely...lets not get our hopes up. 3)The biggest increase in share price will only come when assets in the ground are more fairly valued. 4)If PFG share price only goes up at a rate of $.15/MO au discovered there is little likelyhood of seeing a big run-up. How many million oz can Diablillos hold? 5)Share price even seems to be immune to increase in Silver & Gold. If it were not so we wouldn't be bouncing off these low prices. This resource is now worth $200,000,000 more than it was when silver was at $4.50, yet no improvement. 6)If assets (for some reason) were to be more fairly valued we could Hum & Zing Just ruminating, Dave