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

To: ddl who wrote (13465)	1/27/1999 8:31:00 PM
From: E. Charters	Read Replies (1) \| Respond to of 26850

It will fluctuate. It will be somewhere between its base price and its theoretical maximum. To find these two levels take the present price and imagine you sell all the shares tomorrow. The shares will slide in price down an curve asymptotic to the X or no.-of-shares-sold axis, (the Y axis being price.) At 33 1/3 % of the total area underneath the curve is a level line that defines the base price. It is roughly at the inflexion point. The theoretical maximum is defined as the highest possible evaluation price given the current rumours of value i.e. 5 million tons at 300 dollar per ton value, given a zero cost mill and a high market for product and a blind government with regards to permitting. The base price I figure at about 40 cents a share CDN and the theoretical maximum at 5.67 US dollars. I use a NPV of 50% of the value of the future cash flows and a % of that value of 28% given that gold has a 14% value per share classically but diamond are much more profitable. mailto:echarter@mineletter.com