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Gold/Mining/Energy : ARP - V Argentina Gold -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (2777)	2/17/1999 1:20:00 PM
From: Naan	Read Replies (3) \| Respond to of 3282

Hello DD All of these points are normal, conservative, (and quick) guidelines used when attempting to value an exploration company. However, because you asked, lets see what we can find out. On February 9th this year Barrick stated that their cost of producing gold was 180.00 per oz in 1998, 206.00 per oz in 1997, and is projected to be around 125.00 per oz in 1999. If they sold the gold at current prices of about 286.00 per oz, (in fact they have sold forward to 2001 at 385.00), they would net 161.00 per oz in 1999, 106.00 per oz in 1998, and 100.00 per oz in 1997. Zero to 30.00 is currently coming from large tonnage low grade mines. ARP has very nice grades over long intercepts, this is not a poor mine. Franco Nevada is projecting about 200.00 net per oz on their midas property, that is a great mine. So, 50.00 net is reasonable if not very conservative when coupled with Barrick. Silver is about 1/50th the price of gold, ARP has 5 mil oz of gold and 150 mil oz of silver, which = 8 mil oz gold equivalent. See ARP news on Feb 8th 1999. They also state a new resource estimate is pending. So if 50.00 oz net is conservative, and if the resource is still growing, then 6.20 a share is cheap. But who cares what the price should be or could be, and who cares if we analyze it to death? As speculators we just want to make some money, and it appears that circumstances have currently presented us with a no brainer opportunity. Also if it does pop up 25 or 50% remember to sell some, otherwise it's just paper. Yes when Barrick gets over 10% they will have to report.