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Gold/Mining/Energy : Bema(Bgo) and Arizona Star -- Ignore unavailable to you. Want to Upgrade?

To: Syncrude who wrote (9907)	5/17/1999 9:46:00 PM
From: virginijus poshkus	Respond to of 10482

sync, looks like the final story has been written here. 1.2 billion dollar projects with $250 total costs and irr of 9-10% does not fly today. gold at $300 is the best we can expect and copper most likely will stay below .80 for the forseeable future. i hate to say it, but i still own bgo and ecm. now we can see focus on le incredible in venezuela. there are many more projects that pdg can get into now, they will walk away from cc, why pour money into hole in the ground 14,000 ft up in the andes. i did want this to happen , however reality finally gives us a wakeup call. v

To: Syncrude who wrote (9907)	5/17/1999 10:34:00 PM
From: Terry Swift	Read Replies (2) \| Respond to of 10482

Copper prices would have to go to the moon for it to be developed for the copper rather than the gold. Although copper plays a very big role in that the copper credits bring the cost/oz of the gold down, it will remain a gold/copper play, IMO. The pre-feasibility study was predicated on $1.00/lb copper. At that price, the copper credits bring the cost/oz of gold to just under $100/oz cash cost and under $200/oz total cost; i.e., capital costs, transportation, etc. CC's biggest problem is the huge up front capital costs with no high grade breccia zone to mine up front for a quick recovery of capital. Regarding a sale of AZS when it was at its peak, no sane person would have sold it at that time. They had just hit a world class gold deposit, gold was near $400/oz and they didn't even know what they had. For all Bema/Star knew at the time, there could have been 100 million ozs in that mountain. Hindsight has 20/20 vision and its easy to criticize them now but at the time, they would have been hung by their stockholders if they had sold it without knowing what they had. Bema's management has made plenty of mistakes and they deserve to be criticized for their handling of several elements regarding the Aldebaran property (and a few other moves or lack thereof), but selling AZS before completing a pre-feasibility study is not one of them. If Bre-X had been the real thing and we would not have had, what I now believe, is a conspiratorial effort by the CBs, bullion dealers, and hedge funds to drive down the POG, BGO/AZS would still be flying high. Maybe even higher than it was because Quebrada and other sites that Bema owns 100% of would be drilled and on their way to development. A $400 POG would cover a multitude of sins.