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Gold/Mining/Energy : Int'l Pursuit (T.IPJ) -- Ignore unavailable to you. Want to Upgrade?

To: Ron Everest who wrote (569)	2/12/1998 2:24:00 PM
From: Mikey	Read Replies (2) \| Respond to of 835

I think the action today reflects two things. First, there is standard consolidation usually when a stock breaks out above a resistance level. It breaks above the resistance, then the resistance becomes support. A classic example in this stock: see the valley in June at about 1.80, and then the three attempts to break above that in September and October? It finally broke above it in January, settled back to test the support, and then resumed the climb. chart.canada-stockwatch.com Then there is the 2.75-ish level. Two valleys there in March-April, a climb back up to it in early June, we bumped against it some last week, have broken above it, and are consolidating here. That was the first thing. The second thing might be a little selling due to the riots and 9% drop in Indonesia. But of course, that doesn't impact the Phillipines project. Might be scaring some people off that were in it for Indonesia though. M. PS - I'm sure people will post that these small stocks don't follow technical patterns like the big board stocks do. I've heard it a lot before, so please don't bother. I use TA all the time.

To: Ron Everest who wrote (569)	2/12/1998 11:29:00 PM
From: Abner Hosmer	Respond to of 835

Ron - Please excuse the delay in responding. I've been preoccupied with evaluating the prospects of another stock I'm in that had news today. In the first place, I'm very pleased that the scoping study was completed on a timely basis. In the second place, I'm not at all sure how to interpret all of the numbers, because I'm not sure what they mean and how they are arrived at. For instance, the 77% ROR, is this the annual rate of return on project equity? I wonder what value was assigned to the mining equipment, or the direct cost of buying new equipment. With used equipment and $1.00 copper, the NPV of the project is $362 million, or $196 million at $.80 copper, which is closer to todays price. This would assign IPJ's 40% interest an NPV of $78.4 million. If we are talking about someone other than Minoro buying them out, that probably means new equipment and an NPV of $232 at $1.00 copper or an NPV of $64 million at $.80 copper (which is probably more realistic), but in this case Pursuit would expect to realize 100% of that value rather than 40%. Now, if we are talking about new equipment and a partnership, what % of the NPV of $64 million will Pursuit retain? This may give us a good idea of why Minoro might have been chosen over other potential partners. Although the project looks pretty good, it really couldn't have come at a worse time. With the setbacks in Asia I am expecting commodities may be weak for some time. But in the future I think the project's proximity to Asian markets will be a plus. It would be a great if they could sell now for $70 million or so, but I think in these circumstances I will be inclined to remain cautious. I am glad to see that the cost of production is relatively low in the event that IPJ does proceed with Minoro, but in that case it will be some time before we realize the value of the property, plus there is an element of risk involved in the future price of copper. If there is a speculative element built into the stock on the expectation of a buyout of Hinoba, we could see somewhat of a setback in the shares for awhile. In any case, the Phillipine properties represent a hard asset which more or less serve to put a floor under the value of the company. I wish I had placed more emphasis on this factor in evaluating other mining companies earlier this year, because if I had, I'd be doing a lot better now. Best regards - Tom