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

To: billy who wrote (996)	6/2/1998 2:49:00 AM
From: Mike G	Read Replies (2) \| Respond to of 1706

This is my 1st post to this list, and I have been following the area that RYO has their mine for a few years. The area is superb for gold mining as well as other minerals. The government of B. C. is desperate for development, and I am sure they will bend over backwards to keep this mine open, especially in the area it is located, as it has been severely hit by pulp mill closures, logging problems etc. so there is a great deal of un-employment in the area. The government has just spent huge sums of money to bail out a pulp mill not too far away just to keep people working. They have also recently relaxed mining standards, and are encouraging any sort of development in the mining industry. When I examine the figures for RYO, it seems that they now have $128 million in debt. I am assuming that those numbers are U.S. dollars and so this translates into $180 million cdn. The Mill at Kemess cost $470 million to build, that means the assets this company has are $290 million at Kemess alone, not to mention the value of the gold in the ground. If I divide $290 million by the 140 million outstanding shares, this translates to $2.07 per share. We must not forget that RYO owns other mines, some of which are closed now but others are still functioning. I would think that the share price should be even higher than the $2.07. Maybe another mining company such as Placer Dome etc. would decide to purchase this fine asset. The only fly in the ointment is the ridiculously low price of gold, especially since India has reduced their intake. I hope that this mine will take off, and I can hardly wait for the announcement that they have shipped their 1st brick of gold. My thoughts, Mike G