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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (7809)	9/17/1999 11:13:00 PM
From: Robert Dirks	Read Replies (1) \| Respond to of 81145

Right on. Look at OPEC and how they increased the price by 150% in less than a year by cutting just a little production and a lot of hoopla. I am fully convinced that the large Gold miners (or those who pull the puppet strings) are part of the conspiracy to keep the POG down. It is lunacy to increase production under such market conditions, especially when it's costing some of them a loss of $25 to $50 for each ounce that is produced, plus mine depletion. These idiots are working hard to put themselves out of business and bankrupt their shareholders. RD

To: Crimson Ghost who wrote (7809)	9/17/1999 11:44:00 PM
From: goldsheet	Read Replies (2) \| Respond to of 81145

> With gold prices at 20 year lows and below costs for many miners, > the fact that production continues to rise is truly amazing It may be below cost for many miners, but not for the Top 10 firms who produce about 32 million ounces combined (almost 40% of total) The average gold price for 1998 was about $285, and we are ONLY $30 below that. If you look at some of the reports from the major miners, you will find drops in cost of $30-40 (i.e ABX cash from 160-to-125). In many cases, the profit margin per ounce at $255 gold now is higher than it was at $285 gold last year- a real structural change. If I were a major miner, I would not mind having gold go down further in the short-term, which would reduce the value per ounce of reserves in the ground, then I would acquire reserves at fire sale prices for a long-term benefit to shareholders. Personally, I'm surprised Barrick hasn't bought Newmont. Both produce about 4 million ounces, both have reserves in the 60 moz area, but Barrick is valued at $US7.5B and NEM is $3.2B