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

To: Enigma who wrote (56510)	7/19/2000 6:24:16 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 116842

well, a gold mine is a wasting asset, that has to be brought into consideration as well. as mentioned before, the $350 number represents an industry average as per Goldfields. i'm going to see if i can find out how they arrived at that figure. btw, it is quite obvious that MOST listed gold miners are unable to produce a profit at current prices, even without taking replacement into account. the profitable miners are few and far between and their profits are far from exciting. if one doesn't believe that there's some potential for a rising PoG in the future, there are not too many reasons to buy gold stocks now. they are washed out and cheap vs. the current PoG, but without a gold price rise one can't expect much from them. and even if you believe in a future gold price rise, you have to be careful not to pick one of those hedge funds with a few holes in the ground on the side, lest you forego all potential.

To: Enigma who wrote (56510)	7/20/2000 9:37:30 AM
From: Ken Benes	Read Replies (1) \| Respond to of 116842

You could not have said it better. There is plenty of more production that will come on line. A mining personality can think in no other terms other than keep the mill going regardless of its implication to the price of the commodity. I don't know how you can remotely refer to any gold producer as being rich. Looking at barricks financials, revenue is down as is earnings. If you throw in income resulting from derivatives, earnings are even less. Rich, you have to be kidding. Gold mining shares are little more than wallpaper quality and in time with all the production indicated in your note, they may become pieces of paper glued on walls. Ken