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To: Lucretius who wrote (141977)	1/7/2002 8:11:22 AM
From: Box-By-The-Riviera™	Respond to of 436258

=DJ INTERVIEW: Gold To Avg $289/Oz In 2002; Up 6.6% - GFMS 07 Jan 02:37 By Jim Hawe Of DOW JONES NEWSWIRES TOKYO, Jan. 7 (Dow Jones) - A top official with Gold Fields Mineral Services Ltd. said he expects gold will rise gradually and average $289 a troy ounce in 2002 due to improving demand and a growing reluctance to short the metal. The average price of $289/oz will be a solid improvement over the $271.08/oz average for 2001, said Paul Walker, director for the London-based precious metals consultancy and research firm. "We are mildly optimistic about the prospects for gold in 2002 due to the improving supply and demand dynamics," he said. At 0643 GMT, spot gold was trading at $278.25/oz. Spot gold opened Monday in Hong Kong at $278.55, down from $279.15 late Friday in New York. Walker said much of his optimism stems from the assumption that the resilient U.S. dollar, which has been gold's primary nemesis over the past year, will surrender some ground against the euro and other major currencies in 2002. As gold is denominated in U.S. dollars, a weaker U.S. dollar tends to spur global demand for the metal by making it more affordable in terms of local currencies. "I think we will also see some more buying by institutions in 2002. It may be on a small scale, but that's still better than the heavy selling seen in recent years," said Walker. Despite gold's inability to hold onto its post Sept. 11 price gains to just under $300/oz, Walker said investors shouldn't discount its role as a safe haven in times of crisis. "The limits of the global financial system (after Sept. 11) haven't really been tested. Governments have made more money available to avert disaster and gold has been somewhat pushed aside," he added. Supply May Tighten In 2002 Walker said the U.S.-led war against terrorism, the Argentine debt default and some of the other clouds forming on the 2002 horizon could "cut both ways" forthe gold market by making bullion and other hard assets more attractive to investors, while at the same time hurting economies and leaving "less money in your pockets to buy gold." However, Walker said the consolidation in the mining industry and a growing reluctance among miners to hedge future production should help to tighten supply in 2002. When asked about the ongoing bidding war between Denver-based Newmont Mining Corp. (NEM) and South Africa's AngloGold Ltd. (AU) for the right to takeover Australia's largest gold producer Normandy Mining Ltd. (A.NDY), Walker agreed with the sentiment shared by most on the market that a Newmont victory would be a plus for the price of gold. "Clearly Newmont would be better than Anglo for the price of gold - one is a known hedger of gold, while the other has a policy against hedging," Walker said. Walker added the environment for shorting bullion in 2002 could be much less hospitable as gold lease rates appear to be on the rise. "You would have to be a very brave individual to short gold in the current environment. We see strong support around the $270-level and expect that more gains are now to be made on the upside," said Walker.

To: Lucretius who wrote (141977)	1/7/2002 8:12:09 AM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 436258

=DJ WRAP: Normandy Bid Battle Down To Wire, Godsell Flies In 07 Jan 02:33 By Andrew Trounson OF DOW JONES NEWSWIRES MELBOURNE (Dow Jones)--The battle for control of Australia's largest gold miner Normandy Mining Ltd. (A.NDY) is set to go down to the wire as continued share price weakness in recommended suitor Newmont Mining Corp. (NEM) casts doubt over the outcome. Underscoring the closeness of the battle, Bobby Godsell, chief executive of South African-based rival suitor AngloGold Ltd. (AU), flew into Sydney on Monday in a last-ditch effort to woo shareholders. Passing him in the corridors will be Newmont's Chief Financial Officer Bruce Hansen, who flew into Sydney on a similar mission Friday. Godsell is due to host a press conference Tuesday, raising speculation that AngloGold may have one last card to play, though it is unlikely to be a straight increase in its offer to match Newmont's higher bid. Instead there is speculation Godsell could reveal further details of a proposed alliance with Canadian major Barrick Gold Corp. (ABX), outlining more clearly the value offered by the alliance. At stake is Newmont's plan to create the world's largest gold producer through a three-way merger plan with Normandy and Canada's Franco-Nevada Mining Corp. (T.FN), which owns 19.9% of Normandy. Failure for AngloGold would leave the South African company still seeking to diversify away from its politically risky home base in search of an upward rerating of its shares. As it stands Newmont remains in poll position, its share-and-cash bid valuing Normandy at A$1.89 a share, or A$4.2 billion, 5 cents ahead of AngloGold's combined share-and-cash offer. That's down from a more comfortable 12-cent buffer when Newmont announced the revised offer last week. Normandy shares closed 1 cent lower Monday at A$1.85. Newmont's bid has the backing of Normandy's board, and the U.S. company has the additional advantage of what is in effect a call option over Franco-Nevada's stake in Normandy. But AngloGold's bid has the attraction of being unconditional and offering fast payment, whereas Newmont's offer is conditional on winning a minimum of 50.1% of Normandy. Newmont also still needs various regulatory approvals, including that of Australia's Foreign Investment Review Board. In addition there is the prospect of participating in AngloGold's latest dividend payment expected to be announced by the end of the month and which, according to some analysts, could be worth up to 3 cents a Normandy share. Arbitrageurs Key To Outcome But key to the outcome will be how the host of arbitrageurs that have bought into Normandy react. Arbitrageurs are believed to hold around 35% of Normandy. Newmont will be hoping that its higher offer, plus its greater liquidity, which allows speculators to exit more easily, will get it over the line. But the faster timing of AngloGold's bid could attract speculators facing such time-sensitive pressures as borrowing costs. After accounting for the AngloGold dividend and the borrowing costs of arbitrageurs, some analysts believe the difference between the two bids is marginal and the outcome too close to call. But as the two bids now stand, Newmont is the more likely winner, Daiwa SMBC resources analyst in Melbourne, Mark Pervan, told Dow Jones Newswires. "I think at this stage the margin is just too great for AngloGold to get across the line," Pervan said. Both companies have stepped up their newspaper advertising campaigns, with AngloGold reiterating that it can see "no basis upon which it could justify a further increase in its offer." That leaves the Barrick alliance as Godsell's last obvious card. But to date the details of the alliance have remained sketchy and hypothetical. Under the proposed alliance AngloGold would offer Barrick management control of Australia's largest gold mine, the Super Pit in Western Australia. The mine is an equal joint venture between Normandy and Barrick. In addition, AngloGold is proposing to offer Barrick a stake in an expansion of the Boddington gold mine in Western Australian in which AngloGold holds 33%, rising to 77% following the acquisition of Normandy. AngloGold has claimed such an alliance would deliver "substantial additional synergies."