JustForFun7: BWLRF
Thanks for the info ... here's a copy of the PR you referenced ... the weak US Dollar may be another negative, though it has strenghened in recent weeks.
BREAKWATER UPDATES FORECAST OF SENSITIVITIES TO METAL PRICES AND EXCHANGE RATES
Toronto, Canada, September 22, 2004 – Breakwater Resources Ltd.’s (“Breakwater”) (TSX:BWR) earnings, cash flows and common share price are highly sensitive to the price of zinc in particular and commodity prices in general. Following the acquisition of the Myra Falls operation, management has calculated the sensitivity of Breakwater’s earnings and cash flow to changes in metal prices and in the US$/C$ exchange rate based on production estimates for 2005.
The following table illustrates these sensitivities.
Sensitivities as reported in the 2003 Annual Report for 2004
(Cdn$ thousands) Sensitivities for 2005
(Cdn$ thousands)
Zinc (US$0.01/pound) 3,010 3,202
Lead (US$0.01/pound) 315 284
Copper (US$0.01/pound) 72 311
Silver (US$0.10/ounce) 174 291
Gold (US$10.00/ounce) 436 725
Exchange rate (US$0.01/Cdn$)* 763 1,342
*When the Canadian dollar weakens against the US dollar earnings would increase.
The Company expects to produce 403 million pounds of zinc in concentrate this year, 360 million pounds in 2005 and 404 million pounds in 2006. The 2005 production estimate anticipates the closure of both the Bouchard-Hébert and Bougrine mines and the 2006 production estimate anticipates the start-up of Langlois.
