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Gold/Mining/Energy : Gold Price Monitor
GDXJ 114.87+3.6%Dec 11 4:00 PM EST

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To: Enigma who wrote (52361)5/5/2000 6:08:00 PM
From: Ken Benes  Read Replies (2) of 116814
 
Enigma:

For a mining man, your response surprises me. If you do not bring a new mine to production, you increase reserves, delaying a reduction of those reserves until you begin producing. In the interim of time those proven in ground reserves have a value that accrues to share price. Some would argue that in ground reserves give a gold producer a higher valuation that earnings per share that is predicated on depleting a reserve base.

Ken
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