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)?

Breakwater To Buy Metco Resources

Breakwater To Buy Metco Resources

djones



DOW JONES NEWSWIRES


Breakwater Resources Ltd. (BWR.T) has reached an agreement with Metco
Resources Inc. (MKO.V) whereby Breakwater will purchase 100% of Metco for 7
million common shares of Breakwater.


Brekawater said this agreement is subject to normal closing conditions
including the approval of regulatory authorities and Metco shareholders at a
special and general meeting expected to be held mid-March.


In Lebel-sur-Quevillon, Metco and Breakwater have a 50/50 joint venture on
properties extending over 15 kilometers in the same deformation corridor as
Breakwater's current deposits. The companies also share the Orphee Deposit.


Breakwater, Toronto, is a mining, exploration and development company that
produces zinc, copper, lead and gold.


-Tara Zachariah; 416-306-2100; A