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

To: Al Cern who wrote (1492)	11/23/1998 8:12:00 PM
From: Thomas P. Talbot	Read Replies (1) \| Respond to of 1706

Al the problem seems to be with the hedges and investments. I think the issue is whether a deal can be put together to get rid of a lot of debt for an advanced equity position which is to the advantage of the debt holders because of the perceived upside of corporate continuity in an improved company with debt relief. As I said earlier I believe dilution is irrelevant in this low capitalized small industry given current monetary creation. New equity is a no brainer and probably a big winner for creditors compared to BR. Remember BR has to be forced. This is the issue. Note on their tape today they are getting at least 3 million from the BC govt for Giant Mine development and maybe matching funds from the Fed govt. If everything is going that bad then why is the govt contributing even more money.I think the analysis is whether the debt holders or someone refinancing the debt for equity sees alot of upside from corporate continuity in a debt reduced low cost producer as opposed to the alternative.