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Gold/Mining/Energy : ZINC The base metal. News and Views. Symbol Zn -- Ignore unavailable to you. Want to Upgrade?

To: jack hampton who wrote (114)	2/20/1999 11:35:00 AM
From: Claude Cormier	Read Replies (1) \| Respond to of 3270

<<I do not see much movement here unless zinc goes forward and bad 98 results are already discounted in the market. >> I am sure you are right. If zinc prices stay there or go back down...There will be no short term hope for BWR. As for a need for new financing. I think they might be OK. They have a annual negative cash flow of some $5M from operations. Working capital including cash and receivable was more than $30M at the end of the last quarter... And they have moved some short term liabilities to longer term maturities.. I don't have the terms with their creditors, but they can probably make it till these Nanisivik inventories are changed into cash. But the situation is tight. << Still a CLT fan. I ran the numbers on Red Dog and its a cash cow for the next 30 years. >> I don't follow CLT as it is more in the senior league...but would like you to give some numbers if you can. Red Dog will reach 900,000 tons of concentrates next year.. what are their costs there ?

To: jack hampton who wrote (114)	2/20/1999 12:11:00 PM
From: chevalier	Respond to of 3270

Agreed, the reason to buy this stock at this moment is that you believe zinc prices are heading up plain and simple. This was once a $9 stock and a Bay street darling when zinc prices were higher and it will no doubt return then again with higher zinc. The chart on the stock tells me that its bottomed and is under accumulation. The zinc inventory story tells me that either someone is going to have to come up with a lot of zinc to replenish dwindling inventories or the price is going to have to rise to cool off demand a little.