Winter in the Great White North Message Board

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Strategies & Market Trends : Winter in the Great White North

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To: ralfph who wrote (1355)	8/29/2001 1:29:53 AM
From: Elizabeth Andrews	Read Replies (1) of 8273

If you are wanting to be long a gold equity it must be able to produce at a cash cost of US$95 per ounce or less or forget it. Copper is interesting but the producers will move first and the exploration stocks get no leverage at this point in the cycle unless they have an extraordinary discovery, which is unlikely. The other metals are all small markets and are very difficult in this deflationary no growth environment. In my view, FGX is the only junior gold equity that has a chance to get taken out at a higher price than it's trading at whilst gold is at US$270. PDL may get taken out and PDG is the most vulnerable of the seniors. The mining sector as a whole will turn when the equation of no revenue=no valuation=no liquidity is forgotten once again and speculators can romp around in fantasy.

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