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

To: Michael Bidder who wrote (950)	4/25/1998 11:41:00 AM
From: Al Cern	Read Replies (1) \| Respond to of 1706

1) The Giant Mine has 260,000,000 tons of arsenic laden dust, that need to be remediated. RYO is to have a revised abandonment and reclamation plan in place by November of this year. Peggy thinks she can sell this dust to chip manufacturers for gallium arsenide chip production. Other options are biological, microwave etc. Having said that I can't put a price tag on it but it won't be insignificant. Having said that, I don't think it matters, because the RYO story will be played out long before the issue has to be dealt with. Some level of government will have to take the necessary action. I'm not familiar with the Pamour situation, but again, I don't think it matters at this point. 2) As far as a deal goes, my original statement on March 28, that the subs need it, was based on the assumption that Kemess would be far more valuable as a going concern, rather than a partially completed project. Even though we are months away from any significant revenue streams, I believe the project is worth more now, than it was a month ago. Having said that, I personally think that with $120m ahead of them the subs will not recoup all their principal in bankruptcy. With only $40m they stand a chance. If I was a sub I would take my chances in bankruptcy. If they do approve the increase in senior debt, it will cost RYO shareholders dearly. 3) That is my question too? The only answer have is that someone wants to take advantage of the situation, but their motives would be so transparent, that it would be hard to do the deal. The financiers who may lend to the company are no fools. They know that they have Peggy by the short and curlies, and they aren't going to let go. Kemess may make some sense at a low purchase price. 4) I know of no broker that is recommending the stock. There are those on the other forum that think this might be the opportunity of a lifetime, but they offer no analysis to back up their claims. Some of them think that $400 gold will create a financial windfall for them, yet they do not support their claims with any analysis. Anyone promoting this company must be wanting to get out themselves, but that too is just an opinion. Sincerely, Al Cern