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

To: Tommaso who wrote (3288)	1/16/2003 4:25:24 PM
From: Enigma	Respond to of 3558

It was not my intention to persuade you to buy Barrick - but I stand by my contention that inflation, unless of the hyper variety will have little effect on Barrick's costs - a few dollars per ounce at the very least. You clearly haven't absorbed Russett's excellent recent post!. But how you rationalise buying or not Barrick is your own business - you're over 21 and presumably mentally competent! But you were onto something momentarily when you pointed out that Barrick is a laggard in the market - that should be your cue. IMO Barrick has suffered from misconceptions in the market and as the quarters go by the public will realise that the company has got it right, and that it's the chicken lickens who are out to lunch. But don't saddle me with making up your mind for you - you can do that for yourself!

To: Tommaso who wrote (3288)	1/16/2003 5:19:29 PM
From: Elizabeth Andrews	Read Replies (1) \| Respond to of 3558

Owning a gold producer in a rising gold price environment with a lot of debt is good. Goldcorp's investment rational is very contradictory and makes no sense. If there's inflation and money is getting more worthless, debt is a good thing, especially if you're investing in productive capital that can improve efficiency. For them to proclaim being debt free and having an inventory of gold bullion makes no economic sense in an inflationary environment. And paying the dividend six times a year only increases its admin costs and also makes no sense. This is a promotion with lots of fluff. And, where is the exploration strategy that's badly needed as a lot of the ounces claimed are very marginal in my view. Inflation will cause prices of production to rise but also the price of the produce will be effected. This is the only industry that has pricing power right now and Golcorp is being very conservative, which is going to hurt soon.