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Gold/Mining/Energy : Precious and Base Metal Investing

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To: Elizabeth Andrews who wrote (21155)	9/25/2003 10:40:31 AM
From: TrueScouse	Read Replies (2) of 39344

Liz: <<The major must be stupid to divest or the junior must be brilliant>> WRM has been building its property portfolio by purchases from a number of majors as well as other companies. And yes -- I do think they've done a brilliant job in the way they've managed this. 500% earnings growth is not too shabby... wheatonriver.com Regarding whether the majors are stupid, the issue is more that they seem to be living in a state of denial regarding future reserves. A BHP study in 2000 observed that it will take the discovery of fifteen, 5 million ounce gold deposits annually to replace the current depletion of reserves. Clearly that's not going to happen! So the only way for the majors to even maintain their current production will be through acquisitions. This might save their companies' skins in the short term. WRM will be a prime candidate for takeover, as will CBD, WTC and numerous others with wealth in the ground. It's a dangerous time to be shorting Liz. At some point in this bull, gold will be trading in $10 increments. If they're on the downside, you'll do well! :^) Regards, Howy

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