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Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (392)	6/30/2001 8:37:54 AM
From: craig crawford	Respond to of 1643

Midas Yawns Homestake is no glittering prize for Barrick interactive.wsj.com By Cheryl Strauss Einhorn Last week's takeover of Homestake Mining by Barrick Gold says two important things about the acquirer, notes Sanford Bernstein mining analyst John Tumazos: that Barrick's stock is overpriced and that the company has "a lack of better opportunities." ........................................................................................................................ Homestake, by contrast, is a 125-year-old company with a declining asset base; the company is scheduled to close five of its mine sites this year, including its namesake Homestake mine in South Dakota. As a matter of fact, Tumazos estimates that Homestake's 2010 output will only be 35% of the two million ounces it produced in 2000. Barrick's 2010 output is also projected to decline -- that is, if it does not develop its Pasqua mine project in the Andes, which has been put on hold, or doesn't make any acquisitions. Tumazos estimates Barrick's output will fall in 2010 to about 53% of its 2000 output, which was about four million ounces.