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

To: Al Cern who wrote (1489)	11/23/1998 8:31:00 AM
From: Thomas P. Talbot	Read Replies (2) \| Respond to of 1706

Are they high grading and if so how long can they do it. Or is they grade just better than expected. I think the key to a restructuring has to be getting the bondholders to take some sort of preferred equity position with the realization that they would have more potential with the company with lower debt and upside than a potential Chap 11 situation. In this industry I do not think dilution is that relevant given the low total capitalization. I am of course somewhat skeptical, but every time we have been in a situation where THEY HAD to do something they have done it EX. Trilon financing and bondholder approval-twice and Kemess operating as advertised. Al what do you think? Going back to the high grading, it appears they have been able to do this at the other mines for over a year now. Given the size of Kemess why couldnt they do it (if in fact they are) for two or three years. So far those who have stated Kemess itself is uneconomical appear to be off base. Given Kemess and the exploration potential at Namosi it would appear in no one's interest for the company to go to reorganization.