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

To: Michael Bidder who wrote (1122)	7/28/1998 2:30:00 PM
From: wrm1	Read Replies (2) \| Respond to of 1706

Michael, You sound as if there is some agenda you represent. I am not in the banking business, but have been involved in loan services like RYO previously. The last thing a commercial lending institution wants is to own is a operating business. This puts them in the position of operating the mines, hiring someone to operate the mines, shut the mines down and absorb the maintenance costs ( already discussed ), and miss out on income derived from the loaned amount generating revenues somewhere else. All in all, a horrible situation for the bank. Banks don't loan money to take over the business, they loan a percentage of what they feel the business is worth at fire sale prices. My point all along is that banks don't loan money to take over business concerns. Certainly not in this instance, and the amount loaned is at best what the bank is crediting the value of the loan not to exceed 70% of a conservative value of RYO.