Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Michael Bidder who wrote (744)	3/17/1998 11:38:00 PM
From: JCgold3	Respond to of 1706

Michael, I believe you that you honestly believe that Kemess is not economically feasible at today's gold and copper prices. I have my own doubts. Now that the playing field has changed based on today's announcements, a new analysis must take place. Tomorrow's price will be much different than today's close. The possibility exists that tomorrows conference call will shed some light on what has been going on behind the scenes for the last several months. It's possible that a funding alternative that was totally unacceptable last month or even last week is now the most attractive option due to the tight timeframe allowed for cure of the default. This being the case, RYO would have no alternative but to accept this approach. I realize that this scenario is a low probability but I want to be able to act quickly either way. My question for you is "at what price of gold, assuming a $!.00 copper price, would you consider RYO to be financially viable?" Assume a $60 million cash injection @ 15% per annum, no major cash settlements for at least 2 years on environmental problems at other sites, coverage of interest and debt repayment over a seven year period, coverage of a slimmed down corpoate infrastructure, etc. I recognize this is a far fetched scenario and I'm certainly not living in this dream world, but I'm wondering if RYO or its successor does survive in some form or fashion, might Kemess become a highly leveraged gold price play if gold should rise above $350? $375? $400? $450? FYI: I also believe your sincerity in your posts. I still don't agree with many of the points made as I have believed the major risk to be cash flow, not Kemess profitability. That is obviously a moot point tonite but you never know if the mine will come into play in another speculative form. I hope that other investors took what you said to heart and got out prior to the close today. Good luck to all of my fellow RYO investors as we attempt to pick up the pieces and try to move forward with a very expensive lesson learned.