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Silver Wheaton Corp. Message Board

  • Diver1976 Diver1976 Nov 1, 2005 1:23 AM Flag

    OT Johnny Canuk

    Ever looked at Glencairn (GLE) Read about them on their website and of course you only get the positive info there. What is your opinion on this one. Thanks

    Diver

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    • "Ever looked at Glencairn (GLE)"

      Yep, it's one of my favourite stocks and a good little company ... (GLE on the Amex and GGG.TO on Toronto ...)

      Their Bellavista property that has recently come into production used to belong to Wheaton River when Ian MacDonald was the CEO of Wheaton and it was their next project to be developed ...

      When Telfer and Guistra took over Wheaton, the Bellavista property was effectively given to Ian MacDonald as a "parting gift" ... he then hooked up with Blackhawk Mining and created Glencairn out of the Bellavista property and the Blackhawk assets which owned the Limon mine in Nicaragua and produced 48,000 oz gold in 2004 ...

      Combined, they are looking at an annual rate of 105,000 oz going forward ...

      Management seems focused and worked and fought hard to get this going ...

      On the negative side, Limon is an underground mining operation and operating costs are high, in 2004 it was a "cash cost" of $308/oz and that is higher now ... Bellavista is open-pit but lower grade but still, "cash costs" which were estimated at $257 in the feasibility report will undoubtedly be higher ...

      So, it's a good little company, focused and capable management, but operating costs are going to be in the high end of the acceptable cost range ...

      I am very interested in their new financials which should be out soon as that will give a much better idea of costs and profit margins ...

      Personally, I expect a break even for Q3/05 and $0.01 for Q4/05 ...

      Regards ...

      jc

 
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