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

To: Joe Gun who wrote (659)	4/27/1999 11:38:00 AM
From: Jon Matz	Respond to of 905

Here are my impressions from this mornings conference call. It appears that the goal of TVX was to guarantee the ability to further the Greek project on a much better financial footing. It has the potential to be alone as large as TVX's current operating mines resource and is not included in the 50% of TVX being purchased by Normandy. The Greek asset was set aside and is 100% owned by TVX. Also that Normandy has vast experience in underground mining and has offered access to and assistance from Normandy engineers without additional charge. This financing and technical assistance will allow TVX to move ahead on the Greek project without the need to bring in another equity partner. So if the Greek project is successful and it does appear to be substantially so, even at the current gold price, in effect Normandy is buying only about 25% of TVX's potential. In addition, Normandy will fund the exploration and acquisitions costs of further expansion in South America that will add to the value of both companies. They felt that rather than attempting to become experienced in the technical and political issues facing miners in South America and with the current market weakness in gold and gold mining assets, it was imperative to begin new acquisitions in South America immediately with a company that knows the ropes. It appears to be a consensus that the shareholder value could increase in May when the expected approval of the Greek government to proceed is granted. Also TVX will take into consideration the repurchase of shares on the open market. The reason Normandy gave for not buying TVX on the open market was that they intended to reward TVX for growth. That buying the stock on the market did not properly motivate management to expand the business nor provide them with funding to do so. All in all it appears positive to me, yet the market seems unimpressed. Time will tell.... Cheers, Jon