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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (40885)	10/8/2008 6:13:45 PM
From: TobagoJack	Respond to of 218621

<<plain truth is $700 billion ain’t enough>> ... i agree. just in in-tray player #1: For those who care, a summary of the financial position of many Gold Mining shares. Of the larger producers, Goldcorp and IAMGOLD look interesting and conservative here. Yamana's net debt is less than 2009 Free Cash Flow estimates. See attached. player #2: imo most important is to concentrate on 'pure plays' - i.e. companies that produce primarily gold and are not dependent on a lot of byproduct credits from base metals. the ones with big byproduct credits such as AEM and AUY are likely to have disappointing increases in their reported cash costs. some of that is no doubt factored in by now, but the fact is, gold keeps rising against the other commodities, so the pure play gold producers have the best upside in terms of profit margins. this goes especially for the higher cost producers such as the South African companies. it may be just a coincidence, but e.g. HMY is today one of the strongest performers on the gold board. it makes sense though, as the company produces nothing but gold (it has farmed out half of its future copper mine to a JV with Newcrest and 60% of its future uranium production to a JV with a South African conglomerate), has relatively high (but falling) costs, and a strong project pipeline, that is likewise entirely focused on gold production.