Gold and Silver Mining Stocks 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 and Silver Mining Stocks

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ptaskmaster who started this subject	6/7/2001 3:02:44 AM
From: baystock	Read Replies (2) of 4051

Additionally, one should purchase gold mines that have few or no forward sales. The following is a brief list of such mines, 3 South African, 2 Canadian and 2 American. The list does not include all the mines with small or zero forward sales. The Australian gold mines have been excluded as they have been amongst the most aggressive forward sellers. Two other notable exclusions are Barrick and Anglogold, which companies have large forward books. The list is ranked by the highest ratio of increased revenue (for $100 increase in gold price) relative to market capitalisation, ie the most boost per buck of gold price increase: Mine Share Cap Share Price Market Cap Rev Inc Durban Deep(DROOY) 147.0 $1.13 $166 $101m 60.8% Harmony (HGMCY) 104.0 $5.03 $523 $220m 42.1% Goldfields (GOLD) 454.0 $4.20 $1,906 $400m 21.0% Newmont (NEM) 195.0 $20.85 $4,065 $540m 13.2% Homestake (HM) 263.0 $6.73 $1,770 $232m 13.1% Glamis (GLG) 72.0 $2.67 $192 $22m 11.5% Agnico Eagle (AGE) 57.0 $8.1 $464 $35m 7.5% This is not a very sophisticated approach as it doesn't take into account mine life and other variables such as the ability to bring extra low grade reserves into production fairly quickly. Durban Deep and Harmony would score well on the more sophisticated evaluations as they have large low grade reserves and can resuscitate shut down facilities fairly quickly, so they deserve their pole positions. These are some of the mines that will be in great demand when the thundering herd eventually gets down to doing its homework on gold shares and their upside potential. Having bought some gold bullion and some of the gold shares mentioned above, sit back and relax while you wait patiently for the big short squeeze to erupt - as it inevitably will. The move may be so rapid that it will be impossible to get on board when things really start to pop.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next