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Gold/Mining/Energy : Royal Oak-RYO -- Ignore unavailable to you. Want to Upgrade?

To: Michael Bidder who wrote (711)	3/15/1998 8:38:00 AM
From: JCgold3	Respond to of 1706

Michael, I too have difficulty accepting that RYO management could have believed that the $44 million would have been sufficient to fund Kemess implementation and initial operating costs for at least 3-4 months. If they did, it would appear to be gross mismanagement and certainly would have become obvious within weeks as the problems described in the recent press release surfaced. Why did they need a capital cost re-evaluation that took until last week to complete considering the nature of the problems? If they are out of money, where did it go if not to some of the projects listed in the PR? The added cost of the interest/repayment of the private placement would not have a significant impact on their cash flow. Where did the money go given the fact that the % complete has not changed significantly? Why isn't the repayment of the bonds the #1 priority in terms of cash outflow? They wouldn't sell Kemess for $44 million, would they? The whole thing doesn't make sense. There is a missing piece of information. Eventually we'll know but making investment decisions without all the information is ridiculous. Why are people buying all the shares unless there is a third party transaction about to take place? All questions - no answers. Thanks for the opinion. I'm still struggling because of the missing link. It doesn't all fit together yet.