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Gold/Mining/Energy : Golden Eagle Int. (MYNG) -- Ignore unavailable to you. Want to Upgrade?

To: Brian N L who wrote (961)	3/6/1998 11:05:00 PM
From: Michel Grenier	Read Replies (1) \| Respond to of 34075

Hi, everyone. There were interesting comments on the company helping out with the local conditions. Seeing management acting as responsible human beings is indeed a good sign, not on the profitability of the company, but on its ability to earn respect as an organization that can work with people instead of exploiting their labor. Brian, Indeed, Bre-X shares skyrocketed, but even if the deposit had been for real, I would not have wanted to be the one buying at these levels. They had 220M shares after the split and traded then at around $20. A return rate of 5% meant that they would have needed over a billion dollars a year in net revenue. Assuming a very low operation cost of, let us say, $100/ounce, that would have meant extracting and selling 20M ounces per year. That is a tall order. Anyhow, of course, with huge proven reserves, Golden Eagle could certainly sell parts of the property and/or easily borrow the cash needed to expand operations. How much? How fast? I have no idea and that is why I prefer to be conservative in estimating the potential. If I feel I may be making a good deal even in a conservative scenario, I figure than anything better is icing on the cake Good trading to all! Michel