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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: Alan Whirlwind who wrote (1931)	6/27/1999 9:49:00 AM
From: ForYourEyesOnly	Respond to of 8010

Hi Alan, There may be some mines that can run at those costs.....but many more that cannot. Those will have to shut down, yes? I am not saying they will ALL shut down, just those that can't hack it. And I'm sure that as gold goes lower, the number that can keep producing must go down quick. It probably looks like an inverted pyramid...lots of expensive gold, but not much that can be mined for so little.... After all, gold is a commodity, and certainly never will go to "$0"...... THC

To: Alan Whirlwind who wrote (1931)	6/27/1999 10:56:00 AM
From: Claude Cormier	Read Replies (1) \| Respond to of 8010

Alan, Average total operating costs are near $260. Average cash costs are now $200. With gold at $260, the higher costs unhedged miners are closing and we will see very few new mines coming on stream. Even project with costs as low as $160 and very small capital costs cannot find financing. When will the reversal take place is hard to say. Maybe we will have to go below $200 before it happens. As for silver, we saw the lows in 1993. Silver is in better shape for now, and THC remarks about silver roaring once the cycle turns up make a lot of sense.