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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?


To: Ray Hughes who wrote (867)3/11/1998 2:18:00 PM
From: kimberley  Respond to of 8010
 
Ray,

Thanks for that post! Hope you'll enlighten us some more.

best,
kim



To: Ray Hughes who wrote (867)3/11/1998 4:01:00 PM
From: TD  Read Replies (1) | Respond to of 8010
 
Ray, thank you; knowing of the Russian exposure did not help me as far as the proper "discount" to place on the value per share. Your analysis sure helps, like the idea of options on futures for the blowoff that is sure to take place as you said, excuse me you did not say blowoff, but squeeze, anyway and truly grateful for your insights, yes it would be a pleasure to see more posts from you. BTW have not heard from any that I deal with if Buffett has or has not taken final delivery of the 40+ Million ounces due March 6th, any knowledge on this Ray?



To: Ray Hughes who wrote (867)3/11/1998 5:00:00 PM
From: TD  Read Replies (1) | Respond to of 8010
 
Ray, would you give me a little more help please?

1. Market cap is 24M shares outstanding x $9.00 (us) = 216M -32M cash

so 184M

2.?? how to calculate premium to current silver price

Do we take 500M ounces x $6.00 silver?

Any help would be appreciated.

TD



To: Ray Hughes who wrote (867)3/11/1998 6:00:00 PM
From: paul ross  Read Replies (1) | Respond to of 8010
 
Ray-

I am a little lost trying to do the figures based on your model. Given the following figures:

23.8 M shares (not sure if fully dil. no.)
650 M ounces silver total
334 M ounces @ Dukat (70% of 477 M ounces)
483 M assumed ounces ( 650 - 1/2 of 334)
20.2 ounces per share
6.12 per ounce of silver
8.62 price per share
31.9 M cash

Market cap (205.16M) less cash (31.9M) = 173.26M
So this is option premium. I'm not really sure where we go from here.

PR