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Gold/Mining/Energy : Royal Oak-RYO -- Ignore unavailable to you. Want to Upgrade?

To: CLK who wrote (1664)	4/9/1999 10:25:00 PM
From: roger fontaine	Respond to of 1706

Royal Oak lenders aim to auction assets Court monitor's report By KEITH DAMSELL The Financial Post The creditors of Royal Oak Mines Inc. are preparing to auction off its assets but there's disagreement on whether or not the troubled gold company should be pushed into bankruptcy first. PricewaterhouseCoopers Inc. has developed an "alternative restructuring plan" that proposes the asset sale, notes the court-appointed monitor's April 8 report to the Ontario Court. Cost overruns at the company's Kemess South mine in northern British Columbia and the poor price of gold forced Royal Oak to file for bankruptcy protection in February. The owner of four gold mines across Canada has more than $600-million in liabilities. First secured creditor Trilon Financial Corp. and Bank of Nova Scotia have both lost faith in the company's ability to restructure operations and asked the court last week to spin the company into receivership. In a bid to solve the crisis, PricewaterhouseCoopers has been meeting with the company's creditors since April 1 to find support for its plan. Gold hedge lenders, a collection of three banks owed about $49-million, and senior note holders, owed $278-million, "have expressed support for the plan" but differ on whether or not the monitor should begin the asset sale or the company should be placed in receivership. Lawyers representing the company's long list of creditors will meet in a Toronto court room today to secure emergency financing to last until April 18.

To: CLK who wrote (1664)	4/12/1999 1:46:00 PM
From: Al Cern	Read Replies (2) \| Respond to of 1706

Noone has first dibs on Kemess. It will be auctioned to the highest bidder. Trilon will most likely bid what it is owed or more, if they believe that they can resell it for a higher price. If anyone tries to tell you anything else they are wrong. Unless the recoveries can be increased to the projected numbers the whole thing is worth zero. As far as Kemess goes the original estimates were $6/ton cash production costs. Using the expected recoveries of(.018 oz.s/ton of au at 75%,.22% cu at 82%) and prices of($280au, $0.625cu) you get $6.26 net smelter revenue. This is the best case scenario so you can imagine what the numbers are like at 50% recoveries. By the way have you heard anything about the ORI/TYG/BYG saga? Sincerely, Al Cern