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Gold/Mining/Energy : GEOMAQUE
GEO 15.22+4.4%Nov 14 4:00 PM EST
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To: Bobby Yellin who wrote ()2/3/2000 3:54:00 PM
From: russwinter   of 260
 
Illustrates the risk small producers face doing the construction themselves even on a $170 cash cost mine. Too many monkey wrenches and no room for error. And they are trying to leverage into the lower cost mine with an older mine producing at $254 cost cost.

As far as finding a buyer, about the only thing the majors will take are projects with cash costs well under $150. How many advanced stage exploration projects (I call then tooth fairies)like that are there really? It's pretty obvious that reserves are being eaten fast by the big boys, and are not being replaced. Must read article by John Hathaway on that point:http://www.gold-eagle.com/editorials_00/hathaway013100.html

So the majors are screwing themselves cause they are looking for the impossible, and the GEO's of the world find themselves in no man land. It will be interesting to see how all the pieces are picked up. One thing is certain, supply and reserves are drying up fast and demand is high. Normal economic theory would suggest higher prices?

Best piece I've read in a long time is entitled "Exploration-needed more than ever" by Loewen's Robert van Doorn: tenke.com
,click at "new research report" Basically identifies the deposits (many advanced) that can be done at relatively low costs, and by companies whose mission is to sell out to majors (explorers not mine developers). In my mind that's the best high return bet in this environment.
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