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Gold/Mining/Energy : Precious and Base Metal Investing

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To: tyc:> who wrote (31615)	10/16/2004 11:53:47 AM
From: rubbersoul	Read Replies (1) of 39344

Hi Tyke, Van Eeden mentioned how through 1996-1999 major mining companies dropped projects, closed their regional offices, and fired their geologists due to the declining gold price. But when the gold price turned higher the companies had no budget to reproduce these things. Smartly, with the gold price rising again many of the talented people in the mining industry started their own exploration companies. When commodity prices turned around majors lacked good development projects. They also lacked geologists and people to develop mining projects. Currently, there is a massive shortage of drill rigs and if they get possession of one there is no crew to even operate it Van Eeden focussed on the exploration sector for two reasons: 1) If gold price goes up the industry will go up; 2) If the price in commodities don't go up, then resources will still be needed and exploration will still need to get done. He emphasized the scarcity of good people in the mining industry. Thus, when he builds up his portfolio he views it as a portfolio of people . Hope this helps. Cheers, John

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