NORTHERN SUN MINING CORP LBEFF

RE: What is the real cost of production?

[victor2009]

rocky,

For the real cost of production, when LBE reaches full production in June 2009, you can look at Legend's numbers - they appear to be reasonable, and are in line with those forecast by management. They are forecasts, based on reasonable assumptions. Future forecasts of production costs will be measured with more certainty when the 3rd quarter's numbers are in. Of course these numbers vary as the mining goes through the different mining recovery methods and differing grades.

I think you claimed to be able to read financial statements, if so, you will see that at those levels of cash flow, LBE will easily cover their well controlled administration costs and debt repayment commitments. With your knowledge in this area, you will realize that interest and dividend amounts decrease as principal and preferred shares are redeemed. This was a concept that your cohort aatozz did not comprehend, in spite of his 25 years of business experience.

You might also realize that as debt is retired the worth (market cap) of the company will increase -  meaning share values increase. This continues after the debt and preferred shares are retired, and that cash flow is used to grow the company. Can you imagine how that gap between ISM and LBE market cap will grow, with $5 million or so a month coming into LBE? 49% of LBE is already worth about the same as 100% of ISM, and its just getting its mine production started.