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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (14982)	7/28/2002 8:59:32 AM
From: sea_urchin	Read Replies (1) \| Respond to of 82354

ild >do you think that DRD had a good quarter? Mark Wellesley-Wood, the CEO, seems to think so particularly because they closed out their hedge book at a cost of R748m. This means that the bottom line is a loss of R550m against last quarter's figure of a loss of only R5m. He's also complaining a lot about mining and labor costs rising which is usual as everyone in the industry tries to rip everyone else when them smell a rising POG. Nevertheless, the share is popular with US investors who don't care too much about actual figures and are more concerned about their own future dreams and expectations. And now that the hedge book is closed the stock is likely to become even more popular, notwithstanding the fact that the company hasn't made a profit. As you can gather, DRD is not a favorite of mine. As I have mentioned previously, the fortunes of gold mining companies with marginal old mines, high costs and no hedges are directly geared to a rising gold price. That's fine when the POG is rising --- but when it falls, watch out below. I'm sure you have seen the pictures of people jumping out of the WTC on 911 without a parachute! In my humble opinion, it's better to have an affair with a queen than marry a whore. Which means, if you want to mess with gold stocks, only play with the big ones. PS. When I say queen, I mean a queen, not a gay!