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Gold/Mining/Energy : Mongolia Gold Resources -- Ignore unavailable to you. Want to Upgrade?

To: Dave R. Webb who wrote (3035)	1/16/1999 4:55:00 PM
From: Bearcatbob	Respond to of 4066

Somehow I think there is more to the story of Jim and Bob. The added complexity is that the $300,000 is not all profit. It is an operating profit but not a venture profit because as in your analogy the venture needs an investment. That investment has associated costs that are not reflected in the operating cost of the venture. My simple point is that some on the thread focus on the operating cost only. I believe Nesbitt Burns does a total cost analysis of gold mining companies that show total costs far exceed operating costs. The smaller the production the harder it is to distribute the total costs of the venture on a per ounce basis. So, simply put, I hope the true believers stop for a moment and recognize the aspect of total cost versus operating cost. Perhaps an accounant could comment further. Good luck, bob