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

To: PAUL ROBERTSON who wrote (64435)	2/25/2001 9:05:56 AM
From: russwinter	Read Replies (2) \| Respond to of 116762

I've been asked that more frequently of late. Kind of tells me that smart contrarian money may be nibbling. Here is my answer on Stockhouse. Also add Gabriel (GBU) to that list, as I just snapped some up at 2.42. stockhouse.com At first blush you might wonder why I would be going so aggressively for explorers. I am concentrating my focus on the top 20% percentile cost wise of what are mostly advanced staged deposits. There are very few start up projects on my list. And there is no reason to buy 200 plus cash cost profiles and bet on a price recovery. A price recovery is coming, but the names I'm buying will pop up on the radar screen pretty quickly. Valuations are nominal, and the leverage is enormous. SOME WILL NOT WORK, but others will pay off five to tenfold. If you were to go to the sites you will often see my in depth comments. If you wanted to get jump started on this sector, I would suggest subscribing to Claude Cormier's (who many of you know)inexpensive Ormetal publication. He works hard on the sector. L. Roulston's Resource Opportunities is good as well. You will notice I have few producers. I would only buy FN, IMG (I have posted an update on their hedge book reduction process), RNG, TVX. MDG is about my only trading stock: buy at 5 times cash flow (right now 5 and change), sell at seven times. I had 1 3/8 buys in on GLG, but missed it. The rest of the producers are really a sad lot. I have no interest in high cost names or hedgers (I use the term cappers). I suppose NEM would be acceptable, but on a valuation basis, my picks are much cheaper and I think better companies. I'm only lukewarm towards Goldfields and Harmony and don't own them. Durban Deep is a dog. Goldcorp and AEM are good stories, OK to own, but in my work a bit pricey. FCX is worth a shot at slightly lower prices. One of my greatest concerns about gold bulls, is that they will load up on marginal companies and cappers, and end up scratching their heads after a big rally asking why they didn't have substantial profits.

To: PAUL ROBERTSON who wrote (64435)	2/25/2001 12:23:41 PM
From: Alex	Read Replies (1) \| Respond to of 116762

Output of gold hit by price fall By BARRY FitzGERALD Monday 26 February 2001 Australian gold production has continued to fall from the record levels of recent years in response to the exploration and development squeeze brought on by the slump in US dollar gold prices. According to an industry survey released yesterday by Surbiton Associates, gold production in 2000 was 295.7 tonnes, down 2 per cent on the 301.3 tonnes produced in 1999. Gold production by the industry in the final (December) quarter of the year was 74.5 tonnes, down by 2.6 per cent on the previous corresponding quarter. Surbiton managing director Sandra Close said yesterday that, despite the falls, gold production was "holding up well given the lower levels of gold exploration in recent years ... But this may not continue indefinitely". The irony in the continued fall in Australian gold output is that local dollar gold prices hit a five-year high ($A507 an ounce average) in the December quarter of 2000. That compares with the slide in US dollar prices to a near two-decade low. "The constant focus on the US dollar gold price is quite misleading when you look at the local scene," Ms Close said. "The average local miner selling gold just at Australian dollar spot prices has been doing quite nicely," said Ms Close. "Some producers have also taken advantage of the higher Australian dollar prices by topping up their hedge books." For the year, the Super Pit (Normandy Mining/Homestake) remained the largest operation, with record annual production of 715,164 ounces. Granny Smith (Placer/Delta) with 412,048 ounces held second place, although production was 21 per cent lower than in 1999. St Ives (WMC/408,155 ounces) maintained a steady output to retain its position as the third-biggest operation. Normandy NFM's Tanami Operations in the Northern Territory (382,810 ounces) increased production by 38per cent on the previous year to take fourth position, and fifth was the Jundee/Nimary operation of Normandy Mining with a sound 343,742 ounces. Ms Close said there was a perception that the industry had declined substantially but the production figures show this is not the case. She said that while the number of gold mines had fallen steadily the average output of remaining operations had increased. theage.com.au

To: PAUL ROBERTSON who wrote (64435)	2/26/2001 11:26:20 PM
From: GTC Trader	Read Replies (1) \| Respond to of 116762

<< are you going to pyramid a position? >> Paul, Please explain this trading strategy or point me to a link where I can find out more about it. Have you used it successfully in the past? Is it risky? By the name of it, it sounds like continually buying more on margin as the prices increase. Great for maximizing paper gains on the way up, and also for losing everything on the way down. However, if there is a variant strategy which increases the return without unduly increasing the risk, I would like to hear about it so I can study it. TIA - HB P.S. My comments are for communication and clarification - please do not take them as criticism. I welcome all comments and ideas. That is how we learn, and I've got a lot to learn and welcome any sincere assistance.