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Gold/Mining/Energy : Global Platinum & Gold (GPGI) -- Ignore unavailable to you. Want to Upgrade?

To: Scott Wheeler who wrote (6695)	7/14/1998 10:37:00 PM
From: Jeff Williams	Read Replies (1) \| Respond to of 14226

Scott: I'm afraid Zeev is going to recommend a lithium dose for you about 3x higher than the one he has in mind for me. All kidding aside, you bring an interesting aspect to light, viz., reserve valuation. Once you prove the dirt pile is worth money, the SEC will let you call it reserves, and banks may even loan you money on it's potential value. So I don't think your $14 is too far off the mark except for your 40PE figure. We could get to somewhere north of $7.00 using your figures, but with a more reasonable PE of 20, IMO. Yes, I agree, the possibility of a buyout with all those gazillions tons of open pit reserves at Hassayampa and Weaver Creek are the crown jewels, and the Oro Grande which will require real hard rock mining expertise to exploit will be the final thrust that puts this puppy in orbit. How high is high? I'm guessing $40 to $50/share. Now Zeev's probably going to send the EMT's directly to my doorstop. I think too, we need to be cognizant of the fact that once we start producing in quantity, the price of PGM's may well fall. This could be devastating for South Africa (and possibly Russia as well). They may well have to close some mines (as they are already doing), which will help support the price, but bottom line, when we get to 5,000 or 10,000 tons per day, this is going to be a significant addition to the world's supply of PGM's, and the price may likely fall. I wonder how the folks at Stillwater are viewing our competitive threat? And the Afrikaaners must be wondering if they shouldn't try to snap us up now on the cheap for $10. Not that Dick, or most knowledgeable shareholders would accept an offer that cheap. But I couldn't blame them for giving it a rip. Well, it is a time for musing, isn't it? You know, without Russ Twiford, we would never have come this far. I'm not down talking the efforts that Wayne and Paul and Dick have made, but Russ is the alchemist who figured out how we can get PGM's from desert dirt. That in itself is amazing. The fact he did it with very little money to back his research is astounding. As a South African friend of mine says, "It's a good life if you don't weaken, and sometimes a better life if you do." And at 50 cents, I was feeling pretty wan. Regards, Jeff

To: Scott Wheeler who wrote (6695)	7/14/1998 10:43:00 PM
From: JACK R. SMITH JR.	Read Replies (1) \| Respond to of 14226

Scott, Let me throw a little cold water on the exuberance, and in doing that I only wish to introduce a little reality as calculated by my favorite expert, Me!! Taking the reported figures, I calculate a production cost which includes the inflated refiner cost of $591.38 per ton, and a profit of $418.62 per ton at present production levels. So, at 15 tons per day, we arrive at a profit of $.08 per share, assuming 20mil shares out, and .12 at 25 ton per day. I will not project share price here, but will tell you that there are many shares producing less profit than $.08 that are priced at much higher levels than this stock even given the recent rise. I do expect some retraction and consolidation here, but future price action remains to be seen. There is some small overhead in terms of those who stocked up a very low valuations ( like me, but I am not a seller here), but we will watch action and wait for the market to fairly value the stock. Futurevalue, Jack!!