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

To: russet who wrote (2467)	5/2/2002 2:45:52 PM
From: nickel61	Read Replies (1) \| Respond to of 3558

You are a different kind of gold bug my friend. The difference between "resources" and reserves is a very big one as you well know. The ability to dance within the fine lines of how much gold you can produce at a given gold price is not instantaneous. It doesn't adjust with a magic wand or anything. It takes years to develop and bring on line one of these new discoveries you are talking about and a year or more to de mothball the mines that were shutdown over the last five years as the price of gold fell, and that is an optimistic estimate. The resources might still be there on their books but that doesn't mean they can deliver them into their hedged contracts as easily as you might wish. It is not a good sign for Barrick that in a minor up move their profits decline by fifty percent and their revenues fall. Gold discoveries might be pumped and ballyhooed but in reality they take a very long time to bring anything meaningful to the bottom line. That is all the more curious in light of the rumours about Barrick pursuing a stock swap deal in pursuit of AngloGold. There stock action which is curious, is coincident with the announcement of the new discovery, maybe some of those Bay Street/ Wall Street Hores have been stoking the instituitional monies to give the Barrick Stock a little more luster for an unfriendly bid?????