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Gold/Mining/Energy : Freeport McMoran (FCX) -- Ignore unavailable to you. Want to Upgrade?

To: Yogizuna who wrote (56)	11/7/2000 6:49:21 PM
From: teevee	Read Replies (1) \| Respond to of 141

yogi, Even though the shares appear to be bottoming out here, perhaps it would be better to stay with stocks like AEM and PDG when the metals start humming bullishly again..... The markets appear to view FCX as a gold stock? The FCX chart is similar in comparison to other gold producers such as AU etc. I bought FCX as a copper producer that happened to have high gold and silver credits that lower its cost to produce copper. I don't own any traditional gold stocks such as AU or PDL or Homestake etc. because I view gold as a commodity whose producer's shares trade at unreasonably high P/E ratios. AEM is too small and PDG has too much exposure in S.A. as does AU(see below). Do you know if there are any negative political problems associated with AU (Anglogold)? Surely you jest? Not only are there political problems, blacks, now that they have the vote, don't like working for next to nothing so there is big pressure on wages and therefore costs per ounce. The mines are old and getting deeper as well. A second problem is a social one: aids is ravaging the labour force. There are also recent rumblings suggesting that foreign owned mines should be expropriated so black South Africans can reap the benefits. Anglo American's strategy behind taking Anglo Gold public is two fold: #1 is to diversify production outside South Africa before the ch*t hits the fan if possible, and #2, is to be in a position to divest if need be. regards, teevee