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Gold/Mining/Energy : Birim Goldfields Inc. (BGI-T) -- Ignore unavailable to you. Want to Upgrade?

To: Brian MacDonald who wrote (315)	10/6/1999 8:57:00 AM
From: The Barracuda™	Respond to of 922

--------------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Gold 'rush' pricing threatens banks Short trading, manipulation to blame, charge some -------------------------------------------------------------------------------- By Jon E. Dougherty WorldNetDaily.com ------------- -------------------------------------------------------------------------------- Gold 'rush' pricing threatens banks Short trading, manipulation to blame, charge some -------------------------------------------------------------------------------- By Jon E. Dougherty from his article (paragraph)today "As of June 30, West Africa's Ashanti Goldfields was hedged 11 million ounces of production -- or roughly 50 percent of its reserves -- vs. 8.75 million on March 31, according to a report by John Hathaway of Tocqueville Asset Management. Using "conservative assumptions," the value of the "hedged book," he wrote, was $290 million. However, that asset would become worthless "if gold traded at $325; at $350, the company would begin to face margin calls," Hathaway wrote. "The Ashanti hedge book is a bet that the gold market will remain quiescent and trouble-free. Ashanti's sanguine view is not unusual. Few in the industry are prepared for a spike in the gold price, especially one which does not retrace." "Ashanti's U.S. banker is Goldman Sachs, according to market sources, perhaps explaining why Goldman was rumored to be a big buyer of gold options last Wednesday, following gold's explosive two-day move," said a report from TheStreet.com. ""

To: Brian MacDonald who wrote (315)	10/6/1999 11:00:00 AM
From: Winzer	Read Replies (1) \| Respond to of 922

And what's that about hindsight being 20/20 ? If on the "slim to nil chance" the Ashanti deal falls through, I doubt that GSR would give BGI the same deal they they just turned down. See quote below taken from GATA stuff: <<The gold investment game has changed overnight. I think the coming play in the gold share sector will be the small junior companies that have found gold resources or reserves. Gold in the ground and no, or few, hedges in place if they are a gold producer, too. I am picking up some of these babies One of my bigger gold stock positions is one such company: Golden Star Resources on the AMEX. GSR is trading right below one, once traded at 21, is a Frank Veneroso favorite, and has 6 properties (most in the Guyana Shield) that could become significant mines. I found out today that two highly regarded hedge fund managers are bidding for the stock. Many of the little guy gold stocks are nowhere near where they should be price wise. That is because some long time shareholders of size are selling now. They can get out, where they could not do so easily two weeks ago. These types do not believe the gold move is for real, so they are giving the stock away practically. They will be very sorry. As the price of gold moves up from these levels, these little golden jewels should shine as investments. Gold price dips can, and will, occur at any time. They present buying opportunities. All the best, Bill Murphy, Chairman Gold Anti Trust Action (GATA) gata.org>> Winzer