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 : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: Goalie who wrote (784)	3/31/1998 1:28:00 PM
From: Jadrew	Read Replies (2) \| Respond to of 7235

Better to play IAR or KLA with Munn Lake: Goalie, I own SUF and like the diversified portfolio of holdings which they possess. However, if one was to "invest" in the Back Lake/Munn Lake project, their leverage would be much better with the minority partners (IAR 10.62% and KLA 19.38%). Given that SUF has only 35% (versus the stated 70% - Kennecott can buy back in 35%, which I think all comes from SUF) and currently has a relatively high market cap (approx $400 million), buying IAR or KLA provides better leverage on this project. KLA with 30 million shares @ .83 has a $25 million cap IAR with 12 million shares @ .62 has a $7.5 million cap Assuming that an increase occurred in the market valuation of this project of $100 million, it would mean $35 mil to SUF, $20 mil to KLA and $11 mil to IAR. Per share increases and % for the above would be SUF $1.17 (9%), KLA $.65 (78%) and IAR $.89 (143%), assuming an efficient market. Just some fun with figures.