Gold Price Monitor Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor

GDXJ 98.59

-2.8%

Nov 13 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Rarebird who wrote (58733)	9/23/2000 10:38:52 AM
From: Enigma	Read Replies (2) of 116759

Reserves - I don't know if it was you or 'not a clue' who wrote about gold mining companies selling 'assets' at a discount? Whatever, it was one of you! Reserves are only reserves if they can be mined at the current price of gold. It's the same with all resources. Jim Gray of Canadian Hunter used the analogy of a 'triangle' with reference to oil reserves. At a low price only the tip of the triangle can be recovered economically - but as the price rises more and more of the reserves can be recovered with the use of frac and other recovery techniques It's the same with gold. Ore that costs $375/oz to recover cannot be considered as part of the reserve base because it cannot be mined economically. So it's nonsense to talk aboutgold being 'sold at a discount' - if it can't be mined it's not a reserve, nor is it an asset. But there are 10s of millions of ounces which can be mined economically at today's POG. If a company spends $375 to sell gold at $272 it will lose money. This is the fundamental issue - hedging merely delays the impact.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next