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

To: russet who wrote (2504)	5/6/2002 8:11:32 AM
From: nickel61	Read Replies (1) \| Respond to of 3558

Look, I don't know if you have ever been to Goldstrike but I have several times over the last fifteen years....it used to be one hell of a big mountain, which was largely full of minable gold. Barrick, perhaps better than any other gold mining company, has been ripping that sucker apart for most of the last sixteen years and have done it very efficently...they are not fools and knew that they were unlikly to find another such amazing asset. Faced with this they maximized their financial leverage ...and for this I applaud them. But the question has always been what the hell are they going to do if after Goldstrike! Goldstrike is not a mountain anymore it has been Trolly Assisted into a very big hole in the ground. What do they do for the second act? With that asset largely mined it is now much tougher to pull rabbits out of your hat.. and it is over baby...that is the golden goose. I don't mean that they are toast in the mining business they have acquired some good properties with the profits from Goldstrike and in general have played their cards well, but the low cost impact of the Goldstrike deposit is history...now we need to see what the real situation is behind the financial paper hanging..and if you don't see that then you are blind. If your background is not mining then I can see why the point elludes you about the difference between reserves and economic production...reserves and resources are not mined gold....and resoursces are often not where you want them to be...Have you ever actually been to Barrick's operations?