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

To: baystock who wrote (1614)	7/15/2001 5:55:54 PM
From: russwinter	Read Replies (1) \| Respond to of 4051

Ram, you made a very important point about reserve replacement, replacement cost and mine life. Doesn't seem to be used enough, but the analysts especially are starting to look more and more at this. Pollitt in his article posted here said, "Exploration budgets of the majors, given current cash-flow constraints, are generally focused on existing (and depleting)operations. For every five ounces being mined, perhaps one ounce is being replaced." Going through the names I've covered that's pretty accurate, although part of that is because of basis readjustments from 325-350 POG down to 275. Unless POG advanced by year end, there will be another one of those coming from 300 to 275.