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

To: russwinter who wrote (949)	5/9/2001 1:15:39 AM
From: baystock	Respond to of 4051

Jay Taylor recommends DROOY 04/30/01 Buy Recommendation - Durban DeepDeep (NASDAQ - ADR - $0.96 - DROOY) We have always been a big queasy about buying South African stocks, given what we have perceived to be the high level of political risk. We don't mean to dismiss concern about political risk in South Africa, but we think it may be a bit overblown. Moreover, because of the perception of such high political risk in that country it is possible to buy stocks that are so undervalued vis-à-vis what you pay for American gold stocks that there is no comparison. Given the higher expected return owing to greater under valuations, a modest exposure to some of the South African gold stocks can enhance overall portfolio returns. Moreover, in the past, the South Africans have been among the first of the gold stocks to move at the start of substantial bull market runs. Durban Deep has gold resources totaling 87.2 million ounces of gold. With 147,559,162 million shares outstanding, this means that each share of stock has about 0.6 oz. of gold behind it. Looking at it another way, the market cap for this company is less than $150 million dollars which means that the market is valuing its gold resource at a measly $1.72 per ounce! During the quarter ending December 31, 2000, Durban Deep registered a US$5 million cash operating profit. Its cash operating cost of production was $224 per ounce and it produced 275,980 ounces of gold. This stock represents a leveraged play on gold so that when its price begins to rise, this company's shares could be among the biggest percentage gainers among any major mining firm in the world.