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

To: Michael Bidder who wrote (768)	3/19/1998 11:11:00 AM
From: MiamiMike	Read Replies (2) \| Respond to of 1706

Kemess Mine...Crown Jewel..Future of RYO... Things are starting to look a little too short-sitedness. At one time the future of RYO meant 1,000,000 ounces of gold production by the year two thousand, not 250,000 ounces at Kemess and whatever else can make money (Giant, Pamour, etc.??) which might be a stretch. Let me see, over the past few months we have seen Peggy make some smart moves for the shareholders, be really tight with her money and whatever else makes Peggy tick. What haven't we seen in Peggy? The agressiveness that RYO had. Everybody's holding there breath over Kemess. Maybe people should start breathing again. This is my suggestion, take it for whatever its worth: Peggy needs $50 million. Not a problem a couple of years ago, problem now! Lets say Peggy gets $10 million. Lets say Company A (not ryo) has 10 million shares outstanding. Market price for each share is ~0.20 ($2 million total value). Company A has $5 million in liquid assets, but also has $8 million in debt. It also has some claims with potential for minerals, but little exploraton on it. The $5 million is supposed to be used for exploration purposes in the next 6 months. RYO buys 50% plus 1 share of Company A at a cost of 1,000,000.20 plus 10 percent. Real cost 1,100,000,20. Receives 5 million in cash, $8,000,000 debt and some land. RYO cancels exploration, sends some, or loans 5 million to Kemess. Conclusion: RYO spends 1.1 million to get 5 million (liquid). RYO gets an additional 8 million in debts, but also gets some claims with some potential for mineralization. Take over a few companies and all of you sudden you have $50 million. You take a hit, in the fact that you take on more debt, but you also build up a huge land position for RYO in the process. If Kemess is all cracked up to what it is supposed to be, and gold goes up, not only will RYO pay off there huge debt, but they would actually have a huge amount of land to start exploration on. Not to shabby! That is what the future of RYO should be!! Let's get back to what RYO used to be, one of the most, if not thee most agressive mining companies out there. If Kemess fails, you go bankrupt other way! Get with it Peggy, you tried to take over Lac minerals a company three times the size of RYO, why not take over smaller companies with some liquid!!!! It should be way easier then Lac!! And thats all I have to say! Good day, Mike