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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (85375)	5/13/2002 3:50:22 PM
From: goldsheet	Read Replies (1) \| Respond to of 116805

> some profit taking is a bit more the rule for me I have taken all of my capital off the table by selling some stuff (like triples) and everything left is a free ride. > even look closely at mine lives and reserves? I know I do, which is why I keep coming to the conclusion production will continue at good levels. I started an analysis, which I shared with Claude, and even I was shocked by the results. I went in assuming miners may be replacing 50% of their reserves internally and would eventually have to increase exploration budgets and either find or buy more. To my surprise, I tabulated 38moz of 2001 production (about half) and these firms saw reserves go from 529.6moz to 527.8moz, a drop of ONLY 1.8moz, which means they internally replaced 36.2moz or a whopping 95% ! Lihir was the real killer, increased reserves by 3moz and mined only 650K. Even Barrick added 3moz after mining 6moz, so they found 9moz, 150% replacement. (and they just found another 3moz in Peru!) The RSA miners are going to have to write UP reserves after writing them down to $275 or less last June. There's plenty of gold out there, much more mineable at $310 than $275, and we shall see more when gold pushes $350.