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Gold/Mining/Energy : Indochina Goldfields ltd -- Ignore unavailable to you. Want to Upgrade?

To: Peter Neidhardt who wrote (61)	7/24/1998 7:03:00 PM
From: NPValue	Read Replies (1) \| Respond to of 109

I think the key here is the word POTENTIALLY. I think with Bre-X and what have you that people want definitive proof of a "significant" find before they chase off into something. The press release indicates that they still need to do alot more digging and delineation before they know anything for sure. Several weeks ago, I spoke to Leigh Parrish at the Corporate Office concerning some of their other properties. There is another huge property in Northeast Kalimantan they have been drilling on for the past four months, and they apparently have six drilling rigs on site. She told me they would not issue any press release on that property until they know what the reserves are in that vein. She indicated they should have results and will issue news probably late August / early September if all goes well. The prices of copper and gold certainly aren't helping. The Bakyrchik mine in Khazakstan has 11 million ounces, but if cannot be mined at break-even until a gold price of US$320, even with the new proprietary technology they are using. Myanmar is, of course, the "company maker." 6.5 billion pounds of mineable reserves, which will be produced at a TOTAL (production, capital, and overhead) cost of only US$0.50 a pound. I have figured that given their 5 year mined amounts (55 million pounds in year 1, 125 million in years 2-5) and 20 year amounts (275 million pounds each year), that the after-tax NPV earnings / share should be around US$2.25 / share. They have secured financing for the first 5 years, and years 6 - 25 should not be a problem. How this stock is selling for US$0.80 and not US$2.00 is beyond me. However, such is today's sentiment for copper and gold exploration/production junior companies. With Myanmar production beginning the end of August, and hopefully good news out of Northeast Kalimantan from BOTH of their sites, we should see almost a double of the current price by late September.