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

To: Enigma who wrote (52308)	5/4/2000 11:35:00 PM
From: Alex	Read Replies (1) \| Respond to of 116798

Fair use... Canada's Barrick sees strong gold prices ahead 5 May 2000 02:26GMT LIMA, May 4 (Reuters) - Canada's Barrick Gold Corp. is betting on strong future gold prices in 2000 as world demand for the precious metal improves about 20 percent over 1999, the head of its Peruvian unit said Thursday. Driven by increased Asian demand and renewed interest by investors in gold as an alternative to inflation-threatened currencies, prices are set to shine, said Igor Gonzales, general manager at Barrick Misquichilca, the subsidiary that runs Barrick's Pierina gold mine in Peru. "Barrick is confident in a recovery in the price of gold and that's why we continue with exploration projects," Gonzales told reporters at the Fourth International Gold Symposium in Lima. Gonzales echoed comments made a day earlier by Barrick's President and Chief Executive Randall Oliphant. "Our faith in gold is demonstrated by three new mines in development and $1.5 billion in investment for the next three years," Oliphant said. But Oliphant also said Barrick's, North America's second- largest miner, must improve its operations if it hopes to compete in the future. "The future I foresee for this industry is one of strong competition, so we must make our companies more modern and have more output," he said. "We can't sit by and wait for gold prices to rise to meet our financial objectives. I expect gold to improve by 20 percent (over the year before)," Oliphant said. Barrick's credited the Pierina gold mine, which sits some 13,000 feet (4,000 meters) above sea level in Peru's Andes Mountains, with helping it prop up first-quarter earnings released last week. The mine, which began operations in November 1998, logged a cash cost of $38 an ounce in the first quarter, just below the $39 posted last year. Total cash cost for Barrick's world operations was $133 an ounce. Gold is trading in the international market near $280 an ounce, a slight improvement from the $250 it hit in 1999, its lowest value in 15 years. But Goldman Sachs estimates an average price of gold of $300 this year and expects that to increase to $325 in 2001. Barrick's stock closed down C$0.20 at C$27.70 in Toronto Thursday. (c) 2000 Reuters Limited. markets.ft.com