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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies.
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To: clifford atkin who wrote (15007)4/18/1997 10:08:00 AM
From: Nesbbria   of 28369
 
Shifting to the side, I wonder if this is another "kill the goose that laid the golden egg story".

The problem is to identify the goose and who would want to kill it. What if the goose is the speculators. You can see how capital has dried up, junior miners will have a harder time raising capital now and for some time to come. Who would benefit from killing the goose (and the recent over abundance of cash into the junior miners)? The majors maybe? They usually sit on the sidelines waiting for a junior to take all the risk, watch them make a find and falter because they can't raise the cash to develop their find, and then walk in and pick up some reserves cheap. They have all the cards.

Since Bre-X took off, juniors have been put in the position of having lots of cash and being able to better prove up (develop) their finds, and demanding a higher price from the majors. The majors are suffering, they can't get a hold of low risk reserves at low prices anymore. So the Bre-X thing happens and now, investors are spooked, juniors are drying up and even dying, and the old balance comes back into play. How do they pull it off?

Seems the press has been bashing Bre-X ever since it took off, all it takes is a little scandal and a little mistake (mis-information).

Just a thought (I am sure it has been thought before, but with the activity on this thread over the last month, it has been hard to keep up to all the posts).

Regards

Brian.
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