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To: Perspective who wrote (216438)	1/24/2003 1:57:05 PM
From: Horgad	Read Replies (1) \| Respond to of 436258

The whole currency thing gives me headache so take anything I say with a grain a salt, but to me it seems US denominated earnings can still go up even if RAND POG stays the same. Here is an exaggerated example: Assume gold is US 350 and ZAR 3500 Expenses are ZAR 100,000 100 ounces of gold are sold for US 35,000 Profit is US 100,000 - ZAR 100,000 (ZAR 3500 / US 350) Or US 25,000 Assume gold is now US $400 and still ZAR 3500 Expenses are ZAR 100,000 100 ounces of gold are sold for US 40,000 Profit is US 100,000 - ZAR 100,000 (ZAR 3500 /US 400) Or US 28,571 (so some is lost from the exchange rate change) If I am thinking right, this is because the exchange rate change had a negative impact on the expenses but not on the (exaggerated) profit margin.