DROOY Durban Deep- Best S. African Mine Message Board

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Gold/Mining/Energy : DROOY Durban Deep- Best S. African Mine

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To: POLARBEAR who wrote (130)	4/25/1999 4:06:00 AM
From: baystock	Read Replies (1) of 851

I am not sure which is a better buy, since as you point out it depends on the POG. RANGY will prosper over time even at current POG because Randgold Resources will become a low cost producer with Morilla. But DROOY will benefit more if POG rises to $350 since it is a marginal operation. It is probably good to own some of each. I am also looking at Ashanti which is a very well managed and growing gold producer in Ghana and Tanzania. I plan to own all three of these, with more of RANGY not necessarily because it is better but for tax reasons. Randgold Resources at $5 per share is selling for 3.3x cashflow expected in 2001 when Morilla goes into production. Ashanti at $8 1/2 per share is selling for 4.5x cashflow once their new 400,000 oz/yr Geita mine in Tanzania goes into production. DROOY is currently selling for around 9x current cashflow. Both RR and ASL are growing their production, but DROOY isn't. What do you know about the potential of DROOY's Argonaut project ? -Ram

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