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

To: MiamiMike who wrote (737)	3/16/1998 7:51:00 PM
From: Michael Bidder	Read Replies (1) \| Respond to of 1706

<<The question isn't whether Kemess is profitable or not. It is more then obvious that it is profitable when you take away the capital costs.>> I contend that it will be cash negative from the start.An objective assessment would conclude that this is a possibility. Mount Todd is an example of this. Enthusiasm for the project drove it forward. Remember that without (Dumb) government money Royal Oak would not have secured the financing for Kemess. The reason is simple the deposit was marginal at best. Now with Gold below 300 and copper at .82 the economics are far worse. Can you see my point. Reevaluate Pegasus's Bankruptcy. They also kept their losing properties open till they were compelled to file for court protection. But be aware that there will be no warning. The best you and I can do is conjecture. - Regards Michael (please don't shoot the messenger)