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

To: Bob Dobbs who wrote (38159)	8/1/1999 6:19:00 PM
From: Greg Ford	Respond to of 116764

The other issues is that some producers are non-hedgers. Why would hedgers such as ABX, PDG and Anglo want to bail out non-hedgers by either refraining from hedging or by buying back positions. Production will be curtailed over a reasonable period of time but companies that are considering closing mines have to look at the closing costs such as environmental and reclamation costs. On a cash flow basis it may make more sense to continue to operate an unprofitable mine than shut it down. The positives for this market are the demand/primary supply gap; the relatively high total costs compared to gold price; the decrease in exploration spending; the inability of many producers to get financing at these low prices; producers hedging at these low gold prices and the high-grading that has been taking place. We will see a turnaround the question is when. Greg