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

To: JCgold3 who wrote (714)	3/15/1998 11:19:00 AM
From: MiamiMike	Read Replies (3) \| Respond to of 1706

Kemess Mines Inc. I think thats what Peggy's calling it. Is there any particular reason why Peggy placed Kemess into its own little company (Kemess Mines Inc. ( I think)). Is there a legal reason or a financial one. It seems to me she is trying to keep her main asset away from her other assets(if they can all be considered assets). My guess(imho) would be that she is losing money daily on her other assets (or making break-even at best) because it costs too much to shut them down. Didn't she buy old mines that were losing money, cut costs and then start making money. That was all at above$360/ounce. Now that is below that,how many are actually making money. If I was an investor with multi-millions, I would lend a company money for Kemess, but looking at all the other properties, I would definately have my doubts and probably send my money elsewhere. Looking at just Kemess numbers doesn't cut it, you have to look at all the mines and then start doing some number crunching. Mike.

To: JCgold3 who wrote (714)	3/15/1998 4:23:00 PM
From: Bill Jackson	Respond to of 1706

JCgold, My comments about this week are not a precise estimate, but an expression of imminence of the need, and the worse the terms will get as RYO goes to the brink. The closer they get to chapter 11 the more the vultures will want. I suspect Peggy is playing poker here and is trying to stave off the crash by trying for the bridge funding. I say get the 90 day as RYO will either be flying high, or taken over in 90 days in a negotiated deal with another major. In both cases the calls will do well. I do not see chapter 11 and bankruptcy as an option unless Peggy does indeed step over the edge instead of taking what she sees as a ruinous deal with the vultures.(Vultures are vultures funds and others who "help" companies at a high interest/share/control cost) If things look really bleak the calls will be cheap, out 90 days and that is what I might do. Bill