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

To: jim black who wrote (1549)	7/7/2001 5:38:16 PM
From: russwinter	Respond to of 4051

Gobbling up existing mines is an option, but what does that do for production in general? It just squeezes scarcer existing production and reserves into fewer hands, without creating new assets. And I'll bet Goldcorp would be an expensive purchase. The industry shrinks unless new low cost reserves are created. At 265, to create the 15% IRR I think is required to justify the risk of mining, you need total costs below 225, and probably cash costs below 165. You might as well put production over that threshold on "care and maintenance" until prices recover.