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Gold/Mining/Energy : Mongolia Gold Resources -- Ignore unavailable to you. Want to Upgrade?

To: Phil Jones who wrote (2422)	7/14/1998 6:51:00 PM
From: Dave R. Webb	Respond to of 4066

I wasn't suggesting that this was the value I'd put on the property, it is only one way to value the property. The total invested capital is another way to value the property, as are net present value of the discounted cash flows, total contained ounces, or comparative valuations. All of these other methods produce a higher value. It is just if I was a buyer, I'd be looking at the low end. DCFROI methods are more realistic, but you must assume some production levels and operating costs. Bumbat has enough of a history that these figures can be used. Total contained ounce valuation usually looks at measured and indicated ounces times some figure ($10 to $100 on average, recently on the lower end). The potential or inferred ounces are excluded from this calculation. Dave

To: Phil Jones who wrote (2422)	7/16/1998 11:57:00 AM
From: Bearcatbob	Read Replies (2) \| Respond to of 4066

Phil, This is precisely the point I have been trying to make. It is like a mortgage on a house where the market value of the house has fallen below the loan value. When that happened in the 70s people handed over their keys and walked away. Now MAC not only is below water, they appear to be asking for cash. Therefore, the best one can hope from for the buyer is to meet the future cash calls. The buyer would be better off buying MGR than their share of the mill. Think about this and tell me your analysis if it is different. Bob