Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: goldsheet who wrote (63302)	2/4/2001 3:38:54 PM
From: russwinter	Read Replies (1) \| Respond to of 116767

These may indeed stay in production until the first sign of problems (including any more gold price weakness from here)and then they will be shut down. Your so called $50 in "cash flow" will be eaten up by replacement costs for new ounces, and reclamation costs. And how about depreciating and wearing out mill equipment, trucks, etc? Bit like buying a fleet of trucks, and just covering gasoline and driver expenses. This business model is like watching a mouse on a well worn trendmill, and companies that engage in it should be priced accordingly (little, if any valuation). Most investors are interested in return on capital and growth not capital liquidation. They can continue to do this, but if so, their stock prices are still grossly overvalued and will continue to be marked down. The smart operators should aggressively mothball this production for better prices. And any gold stock investor who will listen to me should take heed if they actually own these stocks. And yes, there are more.