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Strategies & Market Trends : Winter in the Great White North -- Ignore unavailable to you. Want to Upgrade?

To: ralfph who wrote (1355)	8/28/2001 5:00:14 PM
From: tyc:>	Read Replies (1) \| Respond to of 8273

I'll answer the second question first; what's my take on when the mining section will turn. My only answer is "when metal prices climb". In other words my faith rests in the historic volatility of metal prices. How valuable will Antamina etc seem when metal prices start to climb. Look at the price of December copper during the past few days ! Perhaps metal prices have already begun to turn. But I'm not in mining stocks just for the turn. I believe that mines can and will make handsome profits in the future. Stocks like Teck and Noranda at these prices are simply good investments. There you are; you have my three largest holdings.

To: ralfph who wrote (1355)	8/29/2001 1:29:53 AM
From: Elizabeth Andrews	Read Replies (1) \| Respond to of 8273

If you are wanting to be long a gold equity it must be able to produce at a cash cost of US$95 per ounce or less or forget it. Copper is interesting but the producers will move first and the exploration stocks get no leverage at this point in the cycle unless they have an extraordinary discovery, which is unlikely. The other metals are all small markets and are very difficult in this deflationary no growth environment. In my view, FGX is the only junior gold equity that has a chance to get taken out at a higher price than it's trading at whilst gold is at US$270. PDL may get taken out and PDG is the most vulnerable of the seniors. The mining sector as a whole will turn when the equation of no revenue=no valuation=no liquidity is forgotten once again and speculators can romp around in fantasy.