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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: The Vet who wrote (20129)	11/16/2004 2:30:29 AM
From: Proud Deplorable	Respond to of 313114

gold in the ground is better than getting two birds stoned at once.

To: The Vet who wrote (20129)	11/16/2004 10:15:53 AM
From: Condor	Read Replies (1) \| Respond to of 313114

Hi Vet, A mine is a finite resource. A mine is finite but a mining co. with good PE's is not a mine per se. It is a producing (cash flow) company that continually replaces its raw material requirements (ideally). Gold miners can always market 100% of their output but the more they produce and sell, the less they have left. Earnings and PEs can be "improved" by high grading which ultimately reduces the potential value of the mine and often leaves reserves that could have been mined, uneconomic. In the end regardless of their past earnings or PE during the mine life, all that is left is worn out, rusting machines and a hole in the ground that costs money to reclaim. Not so. The true miners of the world are continually replacing, renewing and producing. It is the small mickey mouse outfits that are a one trick pony. I always believe that the first place to look at any gold mining operation is the remaining P&P reserves. Good advice. As the outfit eats up its P&P reserves, is it replacing them on a yearly basis with new exploration or acquisitions? Cheers c