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Gold/Mining/Energy : Gold Price Monitor

GDXJ 97.80

+0.9%

Nov 19 4:00 PM EST

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To: Ken Benes who wrote (51819)	4/22/2000 12:09:00 AM
From: goldsheet	Read Replies (1) of 116762

> How about if the miners close down any operations that are not profitable Most all operations, especially the largest ones, are still very profitable even at current gold prices. Many are getting more profitable. Example: Placer droped their cash cost to $151/oz from $164/oz and total production costs to $220/oz from $235/oz, not to mention they made .13 cents in the first quarter vs. .03 last year. Gold production was 786,000 ozs vs. 734,000 ozs > what if they defer introducing new production. Individual firms makes decisions that are best for them, so after spending hundreds of millions on a property they need to get it into production ASAP to maximize the rate of return. The BMG 40% expansion of the Phoenx project I previously mentioned really makes the numbers work better. I really do understand your point, but getting miners to cut production is about as likely to be successful as efforts to increase demand. I wish it were different, and gold prices were higher. but it just doesn't seem to work that way anymore. Projects are so damn capital intensive that the cash flow just has to keep on coming, almost regardless of the gold price.

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