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Gold/Mining/Energy : Pegasus Gold (PGU) hits 52 week low
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To: GOLDIGER who wrote (27)11/16/1997 2:36:00 AM
From: Eashoa' M'sheekha  Read Replies (1) of 199
 
I Can't Really Agree On That Statement Goldiger.

But I understand why many would look at it this way.PGU's costs have
been well above the industry average,thus putting themselves in the
precarious position of weakness on any downturn and in a fairly short
time frame.They have been on the edge,so to speak,and required US$380
or so Gold to maintain reasonable profit margins.They made a move for
Dayton(relatively cheaper(>US$300)small producer)last year to improve
that bottom line.It didn't fly and both were hurt by that thereafter.

This time of lower prices has brought some crude realities to the
forefront however in the industry in general as you say,but those
companies who survive and go on to grow from the ashes will be
stronger for it.I've been though industry downturns in other sectors
(never in mining)and this has always been the outcome.Gold will not
stay at present levels,but it is still difficult to determine when it
will turn and to what level.But it will turn..that is certain..always
has...always will.Unfortunately for the many PGU's of this world,it
will be a difficult time indeed.Expect more of the same short term.
Long term...who knows.High grade deposits will still be appreciated
when discovered by a junior,just not the same as at US$360 just
earlier this year.Not long ago in the gold timeline of 5000 years.:-)

Regards To All.

Taurus
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