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Gold/Mining/Energy : CUMBERLAND RESOURCES (CBD) -- Ignore unavailable to you. Want to Upgrade?

To: Stallion who wrote (4)	2/9/1998 11:07:00 PM
From: Claude Cormier	Read Replies (2) \| Respond to of 393

<< This stock will be $8 in a year. If it is under $4, WMC will buy them out. >> I dunno if it will be $8...but it will be up for sure... Scoping study out today on Meadowbank... Wow this will be a big winner. Capital cost close to $100M to produce 120,000 ounces a year at a total cash costs of $US156 making of it one of the lowest cost mine in Canada...and they have a lot more to drill. Potential is for multi-million ounces...and that is only 50% of their biz. Western mining may eventually buy them out once they know how many millions ounces they have exactly at Medialine. Exploration will resume this spring at Meadowbank...get ready for more action. Time to accumulate. CC

To: Stallion who wrote (4)	2/13/1998 1:38:00 PM
From: Robert A. Sutherland	Respond to of 393

A PE of 25 is a little optimistic. However, if you look at the asset base Cumberland has, you get a valuation consistent with a PE of ~15.. 100% of 1.5mm oz (Meadowbank) 1.5mm 22% of 3.23mm oz (Meliadine W.) 0.71mm 50% of 0.4mm oz (Meliadine E.) 0.2mm gives 2.41mm oz. At $50/oz in the ground that's $120mm/22mm sh, or $5.4/sh. The stock is discounted because of the uncertainty surrounding POG, but I would say it is undervalued now. Accumulation below $2/sh is good. I also expect this stock has quite a bit more upward potential based on resource growth, so a $10/sh target by end 1999 season is reasonable. Maybe a two year quadruple.