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

To: Edward J. Frankman who wrote (37453)	7/21/1999 2:39:00 PM
From: long-gone	Respond to of 116776

<<Why is everyone still bullish on gold? Gold is not a rare commodity anymore, over 1000 tonnes of gold being produced annually with modern technology. >> Demand is far greater than 1000 tonnes each year(but I can find near none of the many gold bulls of which you speak). "Rare" is not simply a matter of supply, it is involves demand(when we are speaking of gold, a great many other factors are involved also)

To: Edward J. Frankman who wrote (37453)	7/21/1999 4:59:00 PM
From: goldsnow	Respond to of 116776

Modern technology is unable to save mines..I guess it is more expensive than old..<gg> Gold slump to speed up S.Africa mine shakeout 09:36 a.m. Jul 21, 1999 Eastern By Darren Schuettler JOHANNESBURG, July 21 (Reuters) - The shakeout in South Africa's gold industry, which saw another mine go on the auction block on Tuesday, will intensify as diving bullion prices force a review of high-cost operations, analysts say. Avgold Ltd (AVGJ.J) is the latest producer to take action as gold prices wallow at 20-year lows following the auction of 25 tonnes of British gold on July 6. The company said on Tuesday it was considering offers for its Hartebeestfontein (Harties) division which produced over three tonnes of gold in the last quarter to March. The sale is part of Avgold's strategy to focus on lower-cost operations and its promising Target gold project, company officials said. In the March quarter, production problems trimmed Harties' gold output by 580 kg to 3,397 kg at a total cost of $328 per ounce. Gold was trading at $252.90 an ounce on Wednesday. Harties, which employs 9,000 miners, had an operating loss of 14 million rand after amortisation costs of 25 million rand in the March quarter. ''I was not surprised at all,'' said Mark Madeyski, an analyst with O'Flaherty and Co. ''But with this gold price, the price they get for it will probably be lower than they would have received six months ago,'' Madeyski added. Avgold did not name bidders for the mine, but analysts speculated the list would include a mix of middleweight producers and smaller non-listed companies. Harmony Gold Co (HARJ.J), the country's third largest gold producer and a turnaround specialist, said on Wednesday it was not eyeing the Harties' operation. ''We have not put in a bid and we just don't believe it is an operation to which we can add much value right now,'' Harmony Chief Executive Bernard Swanepoel told Reuters. But Harmony is on the hunt for acquisitions in South Africa and the current gold slump will likely see other mines put up for sale, Swanepoel said. ''This rationalisation of assets has been the story of South Africa's gold mining industry for three years now. I think it will continue and the lower the gold price, the faster the pace,'' Swanepoel said. AngloGold (ANGJ.J) and Gold Fields (GFIJ.J), the world's two largest gold producers, are among the companies which may shed operations in the months ahead, analysts said. AngloGold has already sold some shafts in the Free State and analysts speculate the company is reviewing its remaining operations in the province. Gold Fields' Libanon division, which had cash costs of $274 an ounce in the March quarter, is also a sale candidate identified by some analysts. Meanwhile, the fate of one of the South Africa's oldest gold mines, ERPM (ERAJ.J), remained in limbo on Wednesday. A local newspaper reported the only firm bidder for the mine had withdrawn its offer after failing to reach agreement with one union on a restructuring plan to save the mine. ((Johannesburg newsroom, 27 11 775 3155, newsroom+reuters.co.za)) Copyright 1999 Reuters Limited