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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: Jack of All Trades who wrote (30912)	5/3/2000 4:53:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 42523

JoaT, this is actually quite simple: DROOY is THE specialist in operating marginal mines. note for instance their plan to double production at Blyvooruitzicht, a mine that when it was still independent was regarded as ripe for closure. they have a few quite valuable assets, Hartebeesfontein is one of them, and so is the slime and sand treatment facility at Knights. the main attraction is the fact that it is one of the miners whose earnings are most heavily leveraged to the PoG. as you can see, cash operating costs are close to current gold prices. that means that even on a marginal rise in the PoG, DROOY's earnings immediately increase manifold. the gamble you take when buying DROOY here is the following: let's say the PoG rallies and manages to stay above $330 for two years. in that case you can be reasonably sure that the stock price will increase ten to twenty -fold and that you will get the entire purchase price back in the form of dividends. conversely, if the PoG were to fall below $200, DROOY would mothball about 70-80% of its current production, the share price would be cut in half, and you'd have to wait for better times. but, it's an option on gold that never expires, as DROOY's reserves will remain in the ground until it's feasible to mine them again. so it's definitely a stock that's recommended for let's say the more adventurous investors. it's not a 'safe' investment, it is highly speculative, but the potential rewards are big.