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 and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: goldsheet who wrote (1186)	5/30/2001 5:26:26 PM
From: geoffb_si	Read Replies (1) \| Respond to of 4051

Bob: What is your opinion on how cash costs have been reduced so much? High-grading, capital investment, technological advances? All of the above? High-grading can have a positive short-term impact, but brings quicker closure to a mine. Viceroy's Cal. mine was high-graded, but will be closed in a year or so. Thanks, Geoff

To: goldsheet who wrote (1186)	5/30/2001 6:28:44 PM
From: russwinter	Read Replies (1) \| Respond to of 4051

I'm going with high grading as a major part of this. In fact it may be taking it's toll, as I spotted that average grades in South Africa fell to 4.13 g in the first quarter from 4.42 g. in 2000. futuresource.com There are a couple other suspects in Aust. besides high grading. The corporate tax was reduced to 30% from 36%, so that may be a one shot deal (probably under total cost). Second, the depreciation in local currencies helps when you are hedged back into USD, and I don't think South Africans and Aussies can just count on that every year? Finally these are calendar 2000 figures, and don't completely reflect the full impact of higher energy costs.

To: goldsheet who wrote (1186)	5/30/2001 8:20:52 PM
From: russwinter	Read Replies (1) \| Respond to of 4051

Excerpted from Northern Miner on ABX's Pierna property, now approaching it's fourth year of production and of course considered one the best deposits in the world. "Pierna needs low direct costs ($43 in 2000), as it is still clearing off development and acquisition costs that are adding another $200 to its total unit production cost. And, although resources are being converted to reserves, few new resources have been discovered at the property. At the present production rate of 870,000 oz annually, Pierna's existing resource base will be gone in seven years." My comment: With 16 million ounces spot forwards and 3 1/2 million naked calls sold already, looks like ABX fresh new hedging days may be over for some time.