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

To: baystock who wrote (1296)	6/7/2001 7:52:18 PM
From: gold$10k	Read Replies (1) \| Respond to of 4051

Ram, your idea of "the most boost per buck of gold price increase" makes a lot of sense, although I noticed that your list contains only producers, not explorers. I had questions about one stock that is on your list and one that is not. A while back I stopped investing in DROOY because they seemed to shoot themselves in the foot so often. Aside from that, I had heard concerns about their hedge book... do you know more about it. Although there are a number of reason why I am not interested in KGC, I have heard others tout its leverage to the POG. Was there a reason that you did not include it? Thanks, vt

To: baystock who wrote (1296)	6/8/2001 6:11:50 PM
From: Kaena™	Read Replies (1) \| Respond to of 4051

Ram Rao, The information you posted was from Bill Murphy's site -always a good idea to credit the source: Jun 08, 17:20 From Bill Murphy, president of the Gold Anti-Trust Action Committee Alf Field is a retired fund manager who is well known in the investment circles of Australia and South Africa. Alf has permitted the Cafe to serve up his newsletter in the spirit of getting the word out there about what is really going on in the gold market. Golden Opportunity Alfred J. Field June 6, 2001 A unique opportunity of a once in a life time variety is developing in the gold market. Events seem to be moving inevitably towards a short squeeze of historic proportions. It is a situation that could provide study material for economics and financial students for years to come. How does one take advantage of this situation? Obviously the safest way is to purchase physical gold bullion for cash.. Additionally, one should purchase gold mines that have few or no forward sales. The following is a brief list of such mines, 3 South African, 2 Canadian and 2 American. The list does not include all the mines with small or zero forward sales. The Australian gold mines have been excluded as they have been amongst the most aggressive forward sellers. Two other notable exclusions are Barrick and Anglogold, which companies have large forward books. The list is ranked by the highest ratio of increased revenue (for $100 increase in gold price) relative to market capitalization, ie the most boost per buck of gold price increase: Share Market Mine Share Cap Price Cap Rev Inc Durban Deep(DROOY) 147.0 $1.13 $166 $101m 60.8% Harmony (HGMCY) 104.0 $5.03 $523 $220m 42.1% Goldfields (GOLD) 454.0 $4.20 $1,906 $400m 21.0% Newmont (NEM) 195.0 $20.85 $4,065 $540m 13.2% Homestake (HM) 263.0 $6.73 $1,770 $232m 13.1% Glamis (GLG) 72.0 $2.67 $192 $22m 11.5% Agnico Eagle (AGE) 57.0 $8.1 $464 $35m 7.5% This is not a very sophisticated approach as it doesn't take into account mine life and other variables such as the ability to bring extra low grade reserves into production fairly quickly. Durban Deep and Harmony would score well on the more sophisticated evaluations as they have large low grade reserves and can resuscitate shut down facilities fairly quickly, so they deserve their pole positions. These are some of the mines that will be in great demand when the thundering herd eventually gets down to doing its homework on gold shares and their upside potential. Having bought some gold bullion and some of the gold shares mentioned above, sit back and relax while you wait patiently for the big short squeeze to erupt - as it inevitably will. The move may be so rapid that it will be impossible to get on board when things really start to pop. Alf Field Disclosure Statement: The author has positions in gold bullion and some of the gold shares mentioned in this newsletter.