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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: lorne who wrote (35359)	6/14/1999 10:52:00 PM
From: Tomas	Respond to of 116764

Gold: Gloomy outlook for mining - Financial Times, Tuesday June 15 The Macassa closure could be the first of many. Speakers at the Financial Times Gold Conference predicted declining production, mergers and a continuing credit squeeze as miners and financiers come to terms with the falling gold price. Ted Reeve of Scotia Capital Markets suggested that mergers would leave the gold industry dominated by half-a-dozen global players - ones big enough to attract investment from general funds. Michael Folie, managing director of Acacia Resources, sees opportunities emerging from the problems of exploration companies which rely on equity financing and from unhedged production companies. Jamie Sokalsky, chief financial officer of Barrick, suggested that if some of the smaller companies were restricted to short lines of credit, they could find themselves "having to deliver on contracts below spot should the price rally; or facing margin calls from counterparties. And these lines may become more restrictive as counter-parties begin to assess risk differently at these lower prices."