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

To: Madharry who wrote (946)	4/23/1998 9:09:00 AM
From: Al Cern	Read Replies (1) \| Respond to of 1706

If Kemess is worth $450,000,000 I'll eat my hat. Using those same old RYO cost figures of $128/oz. I get a cash flow of $46.5m at todays's gold price. After depreciation, depletion, reclamation, overhead, etc., a new owner would have a return of anywhere from 0-5%. $400 gold could boost that return to about 10%, provided the cost figures are accurate. This assumes copper stays in the $0.80 range. My own guess is that Kemess would fetch no more than $200m in bankruptcy, which using simple subtraction makes the equity worth $0. Sincerely, Al Cern