RE: "BUTT SMOKE"Hi Sapporostan!
I must admit you've got me a little confused.
First off, I did not say that Goldcorp (G) was undervalued, or overvalued.
It is interesting though that G seemed to be doing much better when Rob McEwen was their Chairman & CEO.
Maybe G should have kept him around. He is now with Minera Andes (MAI) and perhaps soon to be with
New Gold (NGD).
You seem to be most knowledgeable, and hence I value your comments and wisdom.
I'm not quite sure what you are in complete disagreement with me.
Is it my figures, my math, or my argument in general?
Accuracy? I checked my figures again with KITCO for the POG----they are basically right on, and accurate.
By the way, it is interesting to note that the POG has Doubled in the past 3 years!
Mathematics? No error here either---my trusty calculator working just fine.
Also my formula for calculating percentages is also correct, and absolutely sound.
Here's some more of my grade 5 Math. regarding the increase in the Price of Gold:
Duration POG THEN POG NOW DIFFERENCE Percentage Increase
======== ========== ========= ============ =================
1 Year Ago $ 1,200 $ 1,740 $ 540 45 %
6 Months Ago $ 1,350 $ 1,740 $ 390 28.9 %
2 Months Ago $ 1530 $ 1,740 $ 210 13.7 %
Now I know that that the costs of Mining Gold have increased since a year ago, or so we are told,
BUT, by how much? Certainly NO way near 45 %!!!
The wages paid to the workers haven't increased 45 %. How much of a wage increase did YOU get
last Year?
Has the cost of the mining equipment gone up by that much? NOPE---in fact the equipment does NOT
need to be repalced every year. The vast majority of the equipment from a year or more ago, is still in use.
A hint---what is the decreciation rate used in accounting for mining equipment? Check their financial
statements.
So, compared to a year ago, or LESS, where is all of this HUGE increase per measily OUNCE going?
Is the VAST MAJORITY of it NOT going straight to the bottom line of the Major Mining Companies in
PURE PROFIT?
If the profit made by a mining company has NOT increased SIGNIFICANTLY in comparison, year to year,
WHATLESS quarter to quarter---------Then the Management of these Major Mining Companies
SHOULD not be SHOT----they should be "DRAWN and QUARTERED"!!!!!
Do you not agree with this either?
Hence, maybe you disagree with the figure I have used for the Price of Gold in the Ground (POGIG)?
This is NOT a FIGURE that I, Barn Breath, magically came up with, nor did I dream it up!
The $ 100 figure for POGIG comes straight from the professional evaluators like Fraser MacKenzie and
the like----do some due diligence and check it out.
FORCED Evaluations???? How can it be----if the figures I used are correct, and I FIRMLY believe them to be,
then it is ALL SIMPLE STRAIGHT MATHEMATICS!!!! And like I said, my calculator is working
PERFECTLY.
So I ask you Sapporostan,
Are my POG figures correct?
Is my mathematics correct?
Is my calculation of percentage gains correct?
To who's bottom line does the huge profit go to when the ounces of Gold are sold?
Will the profits to be reported by such companies like Goldcorp be Up significantly, the same as last period,
or LESS? What do you think?
To help the Major Mining companies out, should the POGIG be DECREASED because it is far TOO HIGH?
What figure would you use for the POGIG?
OR---Should the POGIC be increased, instead of remaining static, and if so to get some of a benefit,
then by how much?
Like I said, I am NO expert, and you seem to have more knowledge than I with regards to these things.
Please tell me where I have gone wrong, and PLEASE, PLEEEEZE, pretty PLEASE,
ANSWER MY QUESTIONS-----for the benefit of ALL.
Whatever you do, DON'T worry about HURTING MY FEELINGS----Just give it to me STRAIGHT.
ANXIOUSLY awaiting your REPLY and next post,
BARN BREATH