Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Terry D who wrote (77572)	10/30/2000 1:42:43 PM
From: SliderOnTheBlack	Read Replies (1) of 95453

o/t XAU weighting phlx.com Here's the top 7: ABX 27% PD 17% AU 14% PDG 13% NEM 12% FCX 6% HM 6% PD, FCX large copper components. FWIW - the "name of the game" imho - is selecting unhedged, or lightly hedged & very upside leveraged to the Price of Gold names here... ABX & AU are very hedged - would be the antithesis of being levered to the upside in the POG. Most would concur that NEM is the most upside levered to the POG of the "major" XAU components - but; not nearly as much as the unhedged, or very, very lightly hedged plays such as AEM FN.to GOLD HGMCY . DROOY is an interesting case; lightly hedged; but extremely levered - even looked upon as an "option" on the POG due to it's higher "costs"... HGMCY & GOLD may be hard to beat as financially stable non/very lightly hedged "names" who have high upside leverage to the POG. Go back to the Sept 1999 Rally & compare before & after prices/return %'s and you'll see the unhedged producers outperformed. Some very significant upside to the "pennies" here as well - some really "not" pennies in the classical sense - other than their shareprices. KGC an interesting No American play here and a "name" producer with - 5-10 "bagger" type of "spike" upside - worth a "DD" look; it & DROOY would be among the speculative plays with substantial if not exponential upside in an "event" driven POG breakout. KGC's net asset value moves up 180% for ea $25 move up in Gold and is cash flow positive all the way down to $241 Gold. Good Luck

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