Battle Mountain Gold (BMG) Message Board

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Gold/Mining/Energy : Battle Mountain Gold (BMG)

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To: IngotWeTrust who wrote (15)	4/14/1997 8:08:00 PM
From: Ralph LaSardo	of 174

BMG really took a hit today. this has got to be the lowest price in a few years. earnings were (17) for the quarter and (36) for the year: below expectation by a significant margin. The fact that production was only 10% hedged didn't help (that is what attracted me to BMG to begin with). The additional burden of depreciation and asset write offs also had a big negative impact. It seems to me that the only hope for BMG in the next year or two is higher gold price (above $450) and production cost to decrease to the $200 area. IMO the major accelerators for this is a declining dollar coupled with increasing inflation. The most recent PPI data seems to give a flicker of inflation, but the Fed also appears vigiliant in fighting inflation. Politics, particularly relating to Japan, does not appear to favor a weakening dollar, considering the recession that they are in now. Bottom line, it is going to be rough going for gold and BMG.

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