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Gold/Mining/Energy : Canadian-under $3.00 Stock-Picking Challenge -- Ignore unavailable to you. Want to Upgrade?

To: Al Collard who wrote (1075)	3/13/2001 11:35:26 PM
From: rockerbanger	Respond to of 11802

that would be good

To: Al Collard who wrote (1075)	3/14/2001 12:57:45 AM
From: Rocket Red	Read Replies (1) \| Respond to of 11802

Mining Platinum/Palladium Glitters in the PDAC Spotlight By Craig Stanley (cstanley@stockhouse.com) Wednesday, March 14 Forget gold and diamonds. At the Prospectors and Developers Association of Canada (PDAC) convention in Toronto, participants have only one group of metals on their mind: platinum group metals. About 7,000 people from 70 countries are expected to attend the 2001 PDAC conference, which runs from March 11 to 14 at the Toronto Convention Centre. The annual jamboree plays host to prospectors touting the potential of their properties, junior miners showing off projects to investors and brokers and top brass from the senior producers patting each other on the back. Slumping metals markets over the past few years have cast a melancholic shadow over the industry. The slowing U.S. economy is also adversely affecting base metals such as nickel, copper and aluminum as companies cut back on their consumption. Yet platinum group elements (PGEs) have significantly bucked this trend. Palladium has jumped from under US$200 an ounce in 1997 to a record high of US$1,100 in January. Prices of PGEs such as platinum, palladium and rhodium have soared as demand continues to rise for these metals in pollution-controlling catalytic converters, and manufacturers fret over a restricted supply from Russia, which supplies the bulk of the world's production. Palladium has jumped from under US$200 an ounce in 1997 to a record high of US$1,100 in January. Platinum has climbed from just over US$300 in 1999 to over US$600 earlier this year. Only two North American companies produce PGEs in significant quantities: Canadian-based North American Palladium [T.PDL] and Stillwater Mining [SWC]. This means more attention for companies exploring for PGEs. Firms such as SouthernEra Resources [T.SUF], Pacific North West Capital [V.PFN], Mustang Minerals [V.YMU] and Geomaque [T.GEO] are only a few among a plethora of companies exhibiting their projects at this year's PDAC. One of the better-attended sessions at the conference was a talk given by Jeffrey Christian, head of New York-based CPM Group. The analyst said demand for platinum and palladium will continue to stay strong longer than most people think, and the recent pullback of the prices is purely speculative and not linked with new shipments from Russia or weakening sales by auto manufacturers. "I think you have a real bubble here and investors have to be careful," said Christian. Christian did have somewhat of a warning to investors. He said while CPM Group was following only nine junior miners exploring for PGEs, the total is now over 35. "I think you have a real bubble here and investors have to be careful," said Christian. Nevertheless, the analyst forecasts palladium to be in the US$800 to US$1,100 price range in one year, and platinum to trade between US$550 and US$600. These prices are significant since they will continue to make PGE explorers' attractive investments, causing these firms to swallow the majority of venture capital presently available and, perhaps, cutting off financing for some juniors with gold and base metal projects. Gold bugs were not presented with an optimistic outlook from Martin Murenbeeld of Murenbeeld & Associates, a metals and financial markets consultancy. The publisher of the Gold Monitor newsletter said central bank selling will offset a decline in mine production, keeping gold prices relatively low at around US$276 an ounce this year and US$294 in 2002. Murenbeeld believes the current strength in gold over the past week marks a short-covering rally, and unless the U.S. dollar falls significantly against other major currencies, there is no hope of a sustained bull market for the yellow metal. Matt Manson, director of marketing at Aber Diamond [T.ABZ], told PDAC attendees that 2001 is not shaping up to be a great year for the diamond industry due to the slowdown in the U.S. economy. But Manson is optimistic about the future. He feels a tight supply for high-quality gems, along with attractive demographics among American consumers, will benefit producers. In addition, the concern over 'conflict' diamonds, gems mined by oppressive regimes to fund civil wars and other quarrels, will further open opportunities for branding by Canadian diamond miners. The slowing U.S. economy and weakness in Japan will also put a cap on base metal prices in the near future, according to Neil Buxton, research director at London-based Metal Bulletin Research (MBR). Focusing on copper, the analyst notes previous warnings about a decline in the use of the red metal were incorrect. As an example: although less copper is used in plumbing fixtures of new houses, more is consumed in wiring. He also said despite a decline in use in telephone wires due to growing fiber-optic cable demand, copper is becoming more prevalent in consumer electronics. In addition, Buxton pointed out that future supply from Iran, Congo and Zambia could be unreliable as a result of political instability in those countries. However, MBR is still only forecasting a 3.8% growth rate a year in copper use over the next few