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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies.
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To: Bob Fairchild who wrote (5773)2/19/1997 8:24:00 AM
From: Karl Zetmeir   of 28369
 
Maybe I just don't get it ....

We invested in an *exploration* company.

By definition, an *exploration* company *finds* gold ... this find happened to be on foreign soil, soil NOT owned by BXM. Further, as an *exploration* company ... the gold *stays* in the ground.

On paper, BXM *owned* 90% of the gold in the ground, gold that as an exploration company stays in the ground. Nice to look at, not too easy to spend. BXM was never in a position to actually mine the gold themselves!

Now we own 45% of an *operating* company ... the gold that the exploration company found will now actually be poured into ingots and turned into *cash*.

While we may not care for the premium paid to move from *exploration* to *operating*, I think we can all agree there was going to be some premium paid. No existing operating company was going to come in and simply do a cost+ building of a 1.6 billion dollar mine ... why would they do that when they have other sites available to them where they can *partipate* in the find?

So we now have to think of BXM as a part owner in an *operating* company, one that will soon be realizing the profits the *exploration* company pointed to, but would have never brought to fruition.

For the record, every time this stock goes down a buck, I'm out $200 Grand ... so I'm not too happy with the market action either.

But, the market will soon realize the transition that has taken place. It may or may not be that BXM will feel comfortable being a part owner in an operating company. Either way, I think the stock will return to it's earlier levels and beyond.

BTW ... I'm not a prude in any sense, but is it really necessary for some folks here to forget civility and courtesy to their neighbors here on SI ... and use the crude language we see here?

As Lenny Bruce said 40 years ago ... why would I wish upon my enemy the nicest thing that a man and woman can do together? <G>
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