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Gold/Mining/Energy : Nuinsco Resources (NWI) -- Ignore unavailable to you. Want to Upgrade?

To: Tom Cat who wrote (1148)	3/3/1999 10:36:00 PM
From: E. Charters	Read Replies (2) \| Respond to of 5821

The smartest play on the street is always the short. Sure it can lose money. 1 in a 100. Nuinsco has 44 million shares out. They have to find a Voisey Bay or they can never support the price. A mere 5 million ton 2 percent nickel mine is not enough. 5 million tons of 2 per cent nickel is worth 8.45 a share all told. That is in straight total nickel per share. The shares would never be worth that. Given a 15 year mine life and 10% profitability on investment which is the Inco 100 year average, if they find 20 million tons of 2 per cent nickel, that is 99 million per year gross. Profit would be 25% and by that time they would have 100 million shares out. That is $0.247 earnings per share. Max price would be 2.50. So a long term short even if they make a big discovery would still make sense. EC<:-}