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Wednesday, January 9, 2008

From the Stock Bullboards- Curveball Does Your Homework

SUBJECT: To buy or not to buy ... Posted By: Curveball
Post Time: 1/8/2008 22:54
»

Definetly not a stock for the faint
of heart or the exicitable.

Good thing they produce Gold
and Silver along with thier
other metals.

Thought I had better take another
look at the production numbers
with today's prices.

Turns out Q3 was quite good for
BWR - production was up quite a bit.
Hopefully they received a good price
for all that metal that was not
shipped in time to be icluded in
Q3 sales.

I was wondering if it's possible
for BWR to make around .10 cents per
share per quarter using thier
current production (not sales)
figures and here's what I came
up with.

ZINC 65M lbs /qtr @ $1.10/lb = $71M
COPPER 3M lbs /qtr @ $3 /lb = $9M
LEAD 5M lbs /qtr @ $1.20 /lb = $6M
SILVER 700K oz /qtr @ $15/oz = $11M
GOLD 11K oz /qtr @ 800/oz = $9M

Total works out to 106M in sales
at current production rates per quarter.

If direct costs and treatment and
marketing come in at around $60M again
that should give them a profit of
around $46M per quarter (less tax).

I believe the fully diluted share
count is around 475M now. (Credit
the company $30M when/if warrants
are exercised and also for the
addition of the assets of the
merger with METCO's assets).

BWR also holds around $30M of
investment in Taseko Mines and Blue
Note Metals.

Not sure if what they are doing with
all thier cash - I thought they had around
$80M at Sep 30 - according to the
balance they seem to
invested a substaintial amount into
some long-term investment(s)?