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

To: TheBusDriver who wrote (53432)	5/31/2000 11:58:00 AM
From: Enigma	Read Replies (1) \| Respond to of 116779

I don't think so - exploration is usually financed out of cash flow or equity - not by debt - debt is usually used to buy plant, and to put mines into production.

To: TheBusDriver who wrote (53432)	5/31/2000 12:29:00 PM
From: goldsheet	Read Replies (1) \| Respond to of 116779

> the gold producers to hedge gold in order to guarantee profits to get $$ loans for exploration? Not really for exploration, but project development. Gold loans are often one of the easiest/cheapest ways to finance a project. Rates are as low as 1-2% and usually 10% of reserves to back the loan is enough to fund the project. More shares do not get issued to dilute shareholder equity and high interest rates on traditional loans, bonds, or convetible bonds do not have to be paid. Some of the smaller gold operators have found this to be the only way to get their projects into production.