FairPoint Communications FRP

DD questions and comments

[hico]

I've started DD on this company. Some good people with credentials and experience on the board. 1- Looks like the Perama project is the company's only asset. It'll require a lot of capex to get a large open pit operation going and the strip ratio, depending on energy costs, may prove to push up the per oz cost considerably. Nevertheless, with a rising POG the sp should appreciate by a factor of 5 or more over 2-3 years. I say this with the caveat that dilution could have a neg effect but a producer of 170k ozs in 2008 should have 800-1billion market cap. 2- 169 million shares out. Sloppy share structure and more funding will be needed for a big mine. 3- are there any other real assets? the U project in S America looks to be the only one but U projects are mostly a scam. The best U projects are in Australia, IMHO, and I bought my first U shares in 2004. 4- too early to tell if the NEV drill program will lead to anything. Thus, near-term producers are the place to be over the next 2-4 years but is there any blue sky after Perama? anything tangible or intangible a potential investor should be aware of? when the sp spiked to its all-time high what drove it there? Thanks for any enlightening comments. My portfolio is all near-term or jr producers... just looking for more as the bull continues. This one looks good but at first blush the 169million shares is a red flag for me. hc

[Goldbug317]

Yeah, your right.In 2008, if we are producing 150k plus ounces,we should have an 800 MM market cap.As far as the share structure:170mm fully diluted will leave us with 27 million in cash.2/3rds of the stock is held by insiders and institutions,so its actualy not sloppy at all.Anyhow,once we get the permit,we will trade for dollars.The ETR is in the hands of the jury.As for the uranium ppty,we will

[ureka]

Goldbug, how the heck can you justify a 800 million $ market cap?

[Goldbug317]

Ureka yeah,I like to be conservative,so a 800MM market cap based on Perama alone is a bit high.However I will show you why we could be in the ballpark. THE FIRST YEAR OF PRODUCTION: 185,000 OUNCES REVENUE AT TODAYS GOLD PRICE: 105,000,000! MINUS OPERATING COST OF 135 BUCKS PER OUNCE:25 MILLION THAT LEAVES US WITH: 80 MILLION PROFIT (MINUS VARIOUS OTHER EXPENSES AS UREKA MENTIONED) That

[WPuget]

I understand Peter is now in Greece.. again. Maybe something will come out of this trip. I also hear that there are Dixie assays in the lab. I don't hold out much hope on that one but certainly the U308 is interesting in South America. If Dixie gives us some joy, call it a bonus for us long term long suffering investors.