BRE-X, Indonesia, Ashanti Goldfields, Strong Companies. Message Board

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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies.

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To: c.r. earle who wrote (6807)	3/4/1997 7:47:00 PM
From: Turk	of 28369

To the remaining faithful: I do not know how much longer BXM will continue to drift downward. The fun of prediction is no longer with me on this one. I remember my Biochem episode far too clearly. What I do know is this. I have a friend who knows a friend (sorry, cliche but true) who is a senior lawyer for a major Canadian bank. He is a serious holder of Bre-x stock, and while he has taken his share of profits, lion's share is still invested. His opinion is that the stock is at worst a hold, and is definitely a long term buy. Short term weakness still exists because it is in the interests of Bre-x rivals (and it now has many) to keep the price low for future takeover, or share swap. He is betting on Freeport stepping in after the legal shennanigans are cleared up. Merukh's willingness to deal is because he does not have a case. We may languish at $15 to $18 for the short term, although he seriously doubted the stock would dip below $18. But he is convinced that it is a $25-$30 stock in the mid to longer term (6 months to a year) which is consistent with many of the brokerage houses which are not Barrick lapdogs. Only RBC and Maisons de Placements seem to be calling for a $15 stock price. Everyone else expects $30 minimum. So my personal advice to everyone is to disregard the daily fluctuations in market price and concentrate on the following. BXM owns a minimum of 45% of 70 million ounces of gold. Do whatever number crunching you want but my guess is that amounts to a conservative $20-25 value. Throw in another 30 million ounces and we are up around $30 with the notion that additional ounces improve the price but not by as much because after all how much can you take out of the ground at once. So dollar value of deep pocket reserves does not make us as much upfront money. I cannot think of a safer investment insofar as the blue chips are due for a fall with the upcoming market correction. Gold may fair better than most expect and no one will fair better than Bre-x whose Busang deposit is the biggest and cheapest to extract bar none. Long term players should be accumulating if they do not have enough of this play but the caution is that this one is not for the faint of heart. Only iron balls or ballettes need apply.

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