new study thread , page-2

re: pjo and pan american silver The problem with Pan American Silver is that it has little or no Gold and it has not much value in base metals either.

http://www.panamericansilver.com/operations/documents/ReservesandResources-final.pdf

It strongly depends on the silver price.
It produces 13 mill silver ounces; its share price is CAN $21.71 and PJO:CAN$5.20

Yet, PJO, the 75.9% subsidiary of BSG is supposed to produce 11 mill ounces of silver as well as gold, a value of about US$ 113.4 mil compared with Pan American's $US117 mill.

But the value per tonne of ore would be $A53 (Pan American) and about $A120 for PJO. This shows the backbone of Gold.

So, it would be cheaper to produce PJO's Silver (Cash cost $US1 per ounce after deducting Gold credits) than Pan American's who don't divulge their cash cost.

However, when PJO starts production, it will have about 98 mill shares maximum IMHO and it could be less as they already would have produced some Silver/Gold before 1 July 2007.
It will also have some borrowing.

Pan American has 70.8 mill shares. But 3 of its 6 mines are in Peru.

It does make one think what PJO (And BSG) will be worth after the feasibility study.

The US$550 for Gold and US$9.0 for silver were used in post 833750 from the previous thread and applied here.

Subject to audit,

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.