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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Larry P. who wrote (78595)	3/25/2000 6:44:00 AM
From: Earlie	Read Replies (2) \| Respond to of 132070

Larry: I like a little dickens called Greystar (GSL - TSE). I personally know and admire the engineers who run this company and they are honest, low key, and proficient. They have spent the last few years discovering and then proving up what I think is one of the largest (if not the largest) gold deposits in the Western Hemisphere. They spent big bucks to have Strathcona (independent firm of immense reputation) provide an independent analysis and an opinion on the deposit and it reads like a love letter. Sounds too good to be true, right? Well here is the bad news that has kept Mr. average (read "no homework") investor at bay. It is located in Columbia. For those who do their homework, they will know that things are changing in Columbia, courtesy of the U.S. government. It also requires a bit of patience, but I see it as a no brainer. This is real gold, and it will come out of the ground, once gold takes off. Also the geology looks good and there are some very rich nodes that can be quickly accessed to pay off the capital and installation costs of a new processing plant (very important to bankers). Environmental issues are not quite the same down there as in N. America, although the guys involved will ensure that it is done properly in any event. Kinross has quietly bought 25% of it. I wonder why? (g) In the current environment, do not buy the big gold producers without checking out their "hedging programs". Many of the big producers have "sold forward" much of their next several year's worth of production, which means that when gold prices move up (which is already underway), they will not see stock price appreciation. Incidentally, it is this insidious and short sighted practice that has aided and abetted the central banks in their endeavour to keep a lid on the price of gold. For more details on this, see GATA's web site, or The Golden Eagle site for details. GSL may well have a few surprises ahead for its investors. A recent short news release provides a hint. The stock price is up on the news, but will likely subside over the next few weeks. I would be a buyer around $US1.00 to $US1.25 after the current burst of enthusiasm subsides a bit. Check out the number of shares outstanding, them multiply this number by the share price to arrive at the market cap. Divide this by 11 million ounces of gold to arrive at the price per ounce that you are paying for the gold in the ground. It works out to a remarkably low price that more than discounts the shrinking risks (I love understatement). (g) Best, Earlie