Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : DROOY Durban Deep- Best S. African Mine -- Ignore unavailable to you. Want to Upgrade?

To: B Hamilton who wrote (463)	2/12/2000 12:05:00 PM
From: Ron Pitts	Respond to of 851

Hell B. Hamilton, and Polarbear too, Personaly I like drooy very much and see it as a very leveraged, high cost gold producer in the area of some 1,300,000 per year over the past few years they have worked very hard at getting there cost down and have expanded there out put greatly but in part of this prossess they have bought out or into anumber of companys, a few even in Austrilla (sp) in so doing they have deluted (sp) themselves, and have far more shares outstanding than in the past coupled with a very poor gold market of the past few years and bingo share price in the dumpster i bought in september at 1.28 and again in january at 1.50. The person you would like to talk to about the company is Ray Demoss, Ray has been in the SA. gold stocks sence the 70's and really knows this story he use to post here so you can find his e-mail adress i would think , please tell him hi for me and to share his current feelins regarding drooy and the gold market the fellow knows his SA;s Regards, Ron Pitts

To: B Hamilton who wrote (463)	2/12/2000 7:02:00 PM
From: baystock	Read Replies (2) \| Respond to of 851

A post I found on Kitco on DROOY's hedging. Personally I agree with the poster that DROOY would be better of buying RANGY then chasing after a bunch of small mines in Australasia: Date: Sat Feb 12 2000 18:34 Gold Dancer (John Disney/Longj) ID#430221: Copyright © 1999 Gold Dancer/Kitco Inc. All rights reserved I think it is a little hard to predict what the hedge book will do for Durban without knowing what they paid for the 500,000 of calls at $325. If these were bought when gold was still under $300 they got them cheap and now they are worth a lot more. If they bought them when gold was $330 in the run up then they paid a lot for them. All I know is this: The calls were listed on the September results which means that if they didn't pay for them till the 4th qtr they must have been bought the last day of Sepember when gold was still under $300. The other thing I read was that Cannacord did a study of Deeps options and said that they will get a little more than the price of gold when gold is under $325 and when gold goes over $325 they will get a little less and when gold is $500 they will get $25 less. That seems like a very good hedge position to me. Now of course it would be better not to be hedged at all but when gold was going down day after day and you're a high cost miner you had better protect your company which is what they did. Now they have reversed course and when the 1st qtr earnings come out in April I bet they are pretty good and the stock will be flying. The end result seems to me to be between both of you and a little closer to Disney. And John, don't say too many bad things about Rangy because that company will be adding $60+ million a year to Deeps earnings at $500 gold. I expect that when Deeps gets to $2.50 they will go after Rangy on a stock deal. Kebble ain't going to be out done by Harmony. These mining boys are just like the high tech boys; in competition with one another. That's just my opinion and it may not happen but I think it is a natural now with Brett gone and Kebble owning over a million shares of Rangy. Gold Dancer