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

To: JungleInvestor who wrote (42322)	10/7/1999 7:45:00 AM
From: long-gone	Read Replies (2) \| Respond to of 116767

<<According to Bear Stearnes & Co. analyst Michael Dudas, Malaysia Mining Corp. Bhd (P.MNN) was the seller. As of Dec. 31, Malaysia Mining Corp. owned 18.6 million shares of Homestake Mining.>> Jungle, Is this saying Malaysia Mining has a hedge problem & they need the cash, or would simply rather invest in their own operations at this point? Did you catch how HM very nearly held it's stock price the better part of the day? This whole gold hedge this thing is going to blow up. And to think, Standard & Poors REQUIRED every mining company hedge or Sacrifice Credit Rating only a few months back! Does this SUCK? Could those Ass Holes at S&P pull off this scam were it DRams & Micron we were talking about? Would they have dared pull this level of this CRAP were we talking about petroleum & Chevron or Texaco? Does the S&P dictate the very rules of running every other company in the US by holding the virtual gun of credit rating downgrade to the head of every other CEO in the world? rh

To: JungleInvestor who wrote (42322)	10/7/1999 10:23:00 AM
From: long-gone	Read Replies (1) \| Respond to of 116767

Message 11473157 From today's Globe & Mail: Yesterday, CIBC World Markets exported a Canadian approach to the U.S. market by teaming up with British investment bank Robert Fleming to buy a 10-million-share stake in Homestake Mining of San Francisco. This bought deal approach, rarely seen south of the border but a regular feature of Canadian deals, saw Malaysia Mining selling down its holding in Homestake. In recent months, Malaysia has been steadily moving off an 18-million-share position, which represented an 8-per-cent holding in the company. CIBC World Markets and Robert Fleming quickly moved the bulk of their Homestake block to institutional investors in a 9.6-million-share trade on the New York Stock Exchange, done at $9.37 (U.S.) a share. Like most gold plays, Homestake has been volatile performer of late. It closed Tuesday at $9.87 a share, and yesterday, after the big block moved at the lower price, the stock rallied to again finish the day in New York at $9.87. By buying stock from the two dealers, a few institutions established large positions in Homestake yesterday at a nice little discount. For CIBC World Markets, this transaction was another successful demonstration of the combined potential of its U.S. and Canadian equity research, trading and sales teams. This shop represents the merger of CIBC Wood Gundy and Oppenheimer & Co., a U.S. dealer acquired two years ago. Executives at the investment bank said that on their own, the Toronto or New York desks likely wouldn't have had the confidence to bid on $94-million of stock in a gold miner. Clients from both sides of the border bought Homestake yesterday. The wild moves in bullion markets over the past two weeks make owning large chunks of gold companies, even for a short time, a real risk to an investment bank's balance sheet. Those involved were tight-lipped about fees on this deal, but one can assume that a Homestake trade worth $94-million likely earned the shops involved somewhere around $3-million. With this deal proving that a bought deal in gold stocks is possible, an increased amount of attention is bound to be paid to an 88-million-share stake in Kinross Gold that's held by Cyprus Amax Minerals. The latter, a copper mining company that's caught up in takeover battles, has openly stated that the Kinross shares are for sale. Yesterday's action around Homestake shows that once a large block of shares no longer casts a shadow over the market, a gold stock can rally. Kinross closed at $4.10 (Canadian) yesterday, down 45 cents on the Toronto Stock Exchange. At yesterday's prices, buying the Cyprus Amax block is a $360-million proposition. Given the success of CIBC World Market's Homestake play, it's a proposition that a number of dealers are now weighing much more seriously. On the analysts' front, after months of being ignored in morning meetings, gold analysts woke up last week to find there were lots of folks interested in hearing their views on a suddenly fashionable sector. Back in May, Griffiths McBurney & Partners lost precious metals analyst Dave Thomas to Newcrest Capital. Soft gold markets meant that the shop, which does a great deal of mining work, could afford to keep the slot open until last week, when Griffiths McBurney hired Larry Strauss away from Canaccord Capital. Along with his Canadian experience, Mr. Strauss has a following with U.S. clients that stems from stints with Merrill Lynch and Prudential Securities. Morgan Stanley Canada also kicked off its local coverage of the mining market by hiring Michael Durose from Bunting Warburg Dillon Read. From a base in Toronto, Mr. Durose will cover senior gold companies in Canada, the United States and South Africa. <http://www.theglobeandmail.com>