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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (888)	4/27/2001 3:50:05 PM
From: geoffb_si	Respond to of 4051

Russ: Good comments, and yes, it's a tough country to do business in the AmCan style. Inside connections are a must. But, there's got to be something to seeing PDG buying into South Deeps, and hearing rumors that Barrick/Anglo were thinking of taking over Goldfields. The mineral wealth is there, and there's a long mining history in S. Africa. The question is what the intentions of the current gov't are, and what the future holds. FN, PDG and Barrick have been (and in PDG/Barrick case, still are) actively acquiring or looking to acquire assets in S. Africa. To label S. Africa and all of Africa as being unsuitable for mining is wrong. Majors are spending their money differently than what the "conventional wisdom" would say. Another example is Barrick buying out Pangea Goldfields in Tanzania. Selective acquisition seems to be the prevailing business model, and S. Africa is actively pursued by majors in spite of the political risks. That gives me a clue of where to invest SOME of my money... Meanwhile, most other junior companies with large gold reserves aren't even approached by the majors for a takeover. Why? Is their price too high? Are labor/development costs too high in Canada? I have no idea, but the Majors are speaking with their checkbooks... Geoff