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Gold/Mining/Energy : Naxos Resources (NAXOF) -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (9897)	3/13/1998 8:26:00 AM
From: Millracer	Read Replies (3) \| Respond to of 20681

Henry: As usual, a very well reasoned post. Thank you. As you know, I have been involved with Naxos for quite some time. While I have never allowed myself to get fantasized by estimates of $16,000.00 per share from David Snow and some other wild numbers circulated by our favorite bull Tom Frederick, I have always hoped that Naxos might be a $100.00 stock and would be very happy at far less than that. It has always been a "play money" investment but I doubt many people like to lose any money, even if they can afford it and even if they knew they might lose it. We can accept it, but we don't have to like it. And that is why, after the most recent report, I have tried to analyze my situation a bit better. Until now, I never felt we had enough confirmed data to even begin to value this stock with any accuracy (we still don't) but at least now we are getting some figures that can be speculatively extrapolated across the FL property. And since this last press release seems to have engendered alot of contrary opinions as to whether it is a good release or a bad release, I got out my calculator. At an avg. of 1/10 oz. of gold per ton, a $300.00 value per ounce, a $150.00 extraction cost per ounce, the "profit" is $15.00 per ton. If we have 1 billion tons of dirt, that equates to $15 billion dollars which, when divided by the 30 million outstanding shares, results in a share price of $500.00. If we have 3 billion tons of dirt, it is $1,500.00 per share. Discounting those numbers by a factor of 10, still gets us a darn nice appreciation to $50-$150 per share. I recognize that these holes could be hot spots and, though unlikely, it is also unlikely that the same numbers are valid across the entire playa, thus the discounts applied above. But that is why this is still a very speculative investment but one which, if my numbers are even close, I am quite willing to make at this time. Since this seems to be so good, I would appreciate anyone looking at my analysis and telling me where I am making my mistakes. Since my calculator long ago ran out of zeros and I have not performed hand multiplication and long division since grade school, I must be getting it wrong. If not, what is all the complaining about?