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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (2285)	4/1/2002 3:32:56 PM
From: nickel61	Read Replies (1) \| Respond to of 3558

In short, we all are familar with the various types of numbers that you need to run a business. I guess what many of us in the investment community have been struck with over the last six or seven years is how gold consistently goes only down, inspite of a cost of production that has driven many of the producers into bankrutcy. At this price we would all agree that there are few viable new mines that will be found and that there will be little new exploration done. The thunder over total production costs and overhead versus "cash costs" is a diversion, the real issue does anyone here think that the free market price should be this low? I doubt it? In 1986 in the northeastern city I live in a fairly nice apartment was about$550 a month and gold was about that an ounce, now fifteen years later the apartment is $1100 a month and gold is $302????? Which one is the most scarce? You tell me.

To: Enigma who wrote (2285)	4/1/2002 3:33:07 PM
From: tyc:>	Read Replies (1) \| Respond to of 3558

I recommend to you a paper published by CIBC World Markets recently. In it they "observed" that the market seems to value gold miners at their Net Asset Value calculated @ the current spot price of gold, PLUS an option value. They go on to demonstrate that the market excludes hedged production from its "calculation" of an option value. CIBC World Markets are so confident of their thesis that they are using it now for all their appraisals of major gold companies. (At my last reading, they say ABX is a "buy")