John EmbryRio Narcea Gold Mines, Ltd.RNG.TOHOLDDec 03, 2002

Lundin (LUN-T) is acquiring this company. Not sure it's worth buying in order to get into Lundin. He likes Lundin and with just buy their stock.

Always dislike this company until 9-10 months ago. Had a history of missing production and over promised/under delivered. Have changed their style. Would like a couple of more quarters to prove they have really turn things around.

This has been a troubled company. They were operating a few gold mines in Spain which were technically giving them a lot of trouble and nearing the end of their mine life. Then they made a nickel discovery. Had some startup problems, but think they'll work their way through that. Management has disappointed on many fronts.

A Spanish gold and nickel producer. Just made a small gold acquisition last year. In a good position. Regulatory environment in Spain is pretty difficult and they just got approval foir their Spanish property. Would like to see a ramp-up of their production before buying.

Are trading on a contract basis. Shipping over to spain. They can recover their opportunity lose. Nickel stock more than gold.

Besides being a significant producer of gold in Spain, they are developing a nickel mine. Are going to have to start moving from open pit mines to underground. Prefers others.

Has a lot of debt, but has support of Spanish government.