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

To: russwinter who wrote (2444)	9/29/2001 11:08:28 PM
From: Gord Bolton	Read Replies (1) \| Respond to of 4051

Thursday September 20, 12:20 pm Eastern Time Voluntary Administrators at Pasminco World's Largest Zinc and Lead Producer Pasminco Is Placed in Voluntary Administration PERTH, Australia (AP) -- Mining giant Pasminco was being run by voluntary administrators Thursday as it battled to survive huge debts and plummeting zinc prices. Pasminco, the world's largest producer of lead and zinc and employing more than 4,000 workers, had debts of $1.3 billion when administrators were called in late Wednesday night. Pasminco chief executive Greig Gailey said the directors had taken the only action available given the uncertainty surrounding the company's future access to credit. ``The administrator is expected to have a line of credit which will ensure that business operations will continue as usual,'' he said. Pasminco accounts for eight percent of global zinc supplies and four percent of lead. It ranks third among world silver producers. Pasminco's mines and smelters in Australia, the Netherlands and the United States will continue to operate under the voluntary administrators John Spark and Peter McCluskey. The company operates a smelter in Budel, southeast Netherlands and another smelter in Clarksville, Tenn. It runs a zinc mine in Gordonsville, Tenn. Trading in Pasminco shares was suspended after Wednesday's session with shares trading at 2.5 cents, giving the company a value of about $27.5 million. In June 1997, Pasminco was valued at $1.54 billion. Pasminco's operations will continue until the administrator had determined ``the most appropriate course of action'', the company said. The cash-strapped company last week posted a full year net loss of $357.8 million, reflecting both the impact of record low zinc prices and the company's currency hedging positions. Pasminco had invested on the assumption the Australian dollar would rise in value this year. Instead, its value slumped to all-time lows.

To: russwinter who wrote (2444)	10/1/2001 1:22:56 AM
From: baystock	Read Replies (1) \| Respond to of 4051

Yes ELD has been doing a good job with the turnaround. But it looks like they have had some good luck also...thanks to the drop in the Brazilian currency, their cash costs are down to $170 per oz now: In the third quarter, Sao Bento has been producing gold at cash operating costs of below US$170 per ounce, excluding the amortization of the Real currency hedge.As a result, the Company's cash position has improved despite the temporary drop in production caused by energy rationing. The Company has successfully modified the operation satisfying the Brazilian Government's decree June 1, 2001 requiring the reduction of power by 20%.The Sao Bento mine produced in excess of 9,000 ounces in both July and August. The increase in operating cash flow has been helped by the Company's decision to unwind its Brazilian currency hedge in July 2001.During 2001 the Brazilian Real has dropped by 39%, which is beneficial to the Company's cash flow since approximately 70% of its costs at Sao Bento are based in Brazilian Reals.