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

To: Square_Dealings who wrote (63297)	2/4/2001 11:59:31 AM
From: russwinter	Respond to of 116766

I agree in part with your comment, except I no longer think a good chunk of this 82 million production can just scrap by at 265. It's like a hospital ward of very old people suffering from the "dwindles". Only a substantial spike in POG will save the marginal and terminal cases (and there are more of those than most realize). And, as I've shown with the first three patients (and yes, I'll have some more), their business models vis a vis the US Dollar is bass ackwards. If currencies like the Aussie and SA Rand show good relative performances to Gold and/or the US $, then the benefits will be offset on the expense side.

To: Square_Dealings who wrote (63297)	2/4/2001 3:07:51 PM
From: goldsheet	Respond to of 116766

> , with prices close to forcing widespread mine shutdowns We would probably need $225 gold to force widespread shutdowns. Companies are like investors who are subject to that great human emotion - denial. No one wants to admit they are wrong and be forced to close down a mine. They will layoff people, retructure operations, sell equipement, and even take writedowns to make the math look better. Some of the writedowns PDG and ABX took will not change cash costs, but will drop total costs up to $20 per ounce. EPS will look better in the future as a result. There are still many deck chairs on the Titianic to be rearranged before the ship really sinks, and the band plays on .......