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Gold/Mining/Energy : Golden Eagle Int. (MYNG) -- Ignore unavailable to you. Want to Upgrade?

To: kidl who wrote (6836)	6/26/1998 1:20:00 PM
From: Jon Matz	Read Replies (1) \| Respond to of 34075

It's impossible to quantify the effect the POG and BRE-X had on gold mining shares, but here is a fanciful scenario. If all things were equal Bre-x had approx 250M shares issued and a stock price of $25. They claimed 10M oz proven while having 2 1/2 times as many shares outstanding as MINE. If we take 60% (MINE's proven compared to BRE-X) of $25 x 2 1/2, we get $62.50. This might have been MINE's stock price if our releases coincided with those of BRE-X and matched their investor interest. Now if we discount that by 50% due to the POG today, we'd have $31.25 per share. And if we now further discount it because of the BRE-X fraud by another %50 percent, we'd have MINE trading at $15.62 per share. This is obviously a fanciful comparison, but where do we get the other obvious discounts that bring down our price to 32 cents per share. Because right now it's valued at 2% so would need to go up by a multiplier of 50x to agree with this scenario. Go figure, Jon