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Gold/Mining/Energy : Gold Price Monitor

GDXJ 98.04

+0.4%

Nov 11 4:00 PM EST

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To: Eclectus who wrote (81883)	2/11/2002 5:55:49 PM
From: goldsheet	Read Replies (1) of 116756

Did not see a time frame either biz.yahoo.com While I do not think $10 is realisitic, I have previously stated that Newmont might have paid too much for NDY. The Prudential analysts mentions that closing the Normandy hedge will take up all the Franco-Nevada cash balance. They would probably be better served delivering production into the contracts over time than blowing the FN cash just to make the claim they are 100% hedge free. Newmont also has close to $1 billion in debt on their balance sheet which cost them $80M in interest last year, which also would be a better use of the FN cash. Newmont only had $20M of operating earning in 2001, which would have been $100M if they had no debt/interest. They need to focus on the balance sheet, improving cash flow and earnings, and getting their properties under control (sell off and/or close marginal ones) They can not bet the company on higher gold prices, they have got to make the number work at $300. IF they do not do these things or gold doesn't move up higher, they might find themselves being acquired and divided up by Barrick and Angolgold (both generating huge cash flows and earnings) a few years from now. NEM might have won the latest battle over Anglogold, but they still could lose the war.

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