Cambior Inc (fka CBJ)

[patiencepays]

Report on Cambior 4th quarter
Cambior's fourth quarter EPS of $0.02 was in-line with expectations. The company announced its production results on January 14, leaving room for few surprises. The fourth quarter saw a slight recovery in output from Doyon/Mouska and Omai. Gros Rosebel started mill operations on a sustained basis on February 11. We, along with Cambior, continue to forecast production of 245 K oz from the asset this year. We continue to view Cambior as one of the more attractively valued producers. The shares are currently trading at a 7%-discount to our 0% NAV of $3.33/sh. Our target of C$5.25 represents only a 20%-premium to 0% NAV compared with an intermediate average of 45%. As Gros Rosebel delivers into its targets and the company continues to grow earnings and cash flow, we will revisit our target with a positive outlook. In the meantime, we reiterate our Overweight recommendation and maintain our C$5.25 target price." (February 19, 2004)
-GEORGE ALBINOORION SECURITIES INC.

"I like Cambior* Inc. because of its value. It's very cheap on a price-to-cash flow basis. The company has experienced some problems, specifically its hedge book and high cash costs at some of its mines. I expect the company to exit the year with much lower costs, higher production, and almost very little in the way of a hedge book. The opening of the new mine next month in Surinam, the company's lowest-cost mine, will help bring costs down. I also expect the company to unwind its hedge book this year. Cambior has an excellent balance sheet with a large net cash position. We anticipate the company will either use some of its cash to eliminate its hedge book, or pre-deliver some future gold sales in order to cover it. Cambior also has some very interesting exploration going on at various mines. This could add a lot of value very quickly, because these discoveries will require very little capital in order to add production." (January 27, 2004) Disclosure: *Does the analyst or a member of the analyst's household have a financial interest in the securities of any of these companies? YES Which one? Cambior Is it a long or short position? LONG What type of security is it? COMMON
-DAVID STEINSPROTT SECURITIES

"Cambior trades at less than 7x 2005E CFPS making it by far the cheapest mid-tier gold producer. While its hedge book, declining production profile and high cost base have in the past warranted a discount, all three of these issues are improving, and therefore we see Cambior continuing to close the valuation gap with its peers in 2004. Our C$7.00 target implies an 11.4x multiple, which would still make Cambior the cheapest mid-tier producer using this metric." (January 12, 2004)
-DAVID STEINSPROTT SECURITIES

"Cambior offers the best valuation within the tier and should benefit by the successful startup of its new Rosebel property in Q1 and details about Camp Cayman." (January 5, 2004)
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