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Gold/Mining/Energy : Bema(Bgo) and Arizona Star -- Ignore unavailable to you. Want to Upgrade?

To: CanStocks who wrote (7965)	10/24/1997 8:26:00 PM
From: Bob Hack	Respond to of 10482

To all - Here is a outline on the gold situation that might help clarify some of the previous posts. I highly reccomend these sites. Cheers,Bob ~~~~~~~~~~~~~~~~~~~~ Finance - Precious Metals Report for Friday, October 24, 1997 In alliance with Money Online at money.com Gold futures prices plunged to 12-year lows Friday after a Swiss panel of experts formally recommended selling more than half the country's gold reserves, which would flood the market and could lead other countries to follow suit. News of the Swiss National Bank's proposal pushed gold for December delivery down $16.10, or 4.9%, to $308.30 -- a level last seen in February 1985. Proposed changes in Switzerland's monetary policy unveiled Friday would allow the Swiss National Bank to allocate 1,400 metric tons of its 2,600 tons of gold reserves for purposes other than stabilizing the Swiss franc. That raised immediate fears that some of the gold would be sold on the open market. The Swiss plan, released by a panel created by the central bank and the Swiss finance ministry, was particularly unsettling to investors after gold failed to post substantial gains on Thursday, despite financial uncertainties that swept through global markets after the Hong Kong stock market plunged. December gold rose just $1.10 an ounce Thursday in New York. Gold often gains sharply at times of financial uncertainties because it has been seen in the past as a so-called safe-haven investment. But the Swiss plan dominated trading on Friday. Under the monetary plan, seven billion Swiss francs ($4.78 billion) of gold would be initially earmarked for a proposed fund that would be used for humanitarian purposes, including paying compensation to Holocaust victims. The humanitarian fund hasn't yet been sanctioned by Parliament. The Swiss National Bank has traditionally valued its 2,600 tons of gold at an extremely conservative 4,595 francs per kilogram, compared with a market price of close to 17,000 francs. The revaluation would bring current gold reserves closer to their market value of 44 billion francs from the 11.9 billion francs currently audited. The finance ministry's proposals for the revision of the country's monetary constitution will now be submitted to Parliament. A vote there and an ensuing referendum aren't expected until Spring 1999, at the earliest. The Swiss people's vote will likely be a de facto decision on the future of the Humanitarian Fund, which has run into some public opposition in the past. The possibility of such a sale could prompt other countries to cash in on their gold reserves and use the proceeds to invest in higher-yielding investments, said analyst Bette Raptopoulos at Prudential Securities Inc. "It's a lot of gold that the Swiss are talking about," she said. "But the real issue that has shaken the market is that this diminishes long-standing central bank commitments to gold and their reserves and opens the door to a flood of countries selling their inventories." Other precious metals were dragged lower by gold. December silver plunged 15.3 cents to finish at $4.785 per ounce, while January platinum tumbled $10.90 to $412 per ounce. December palladium fell 95 cents to $203 an ounce, buoyed by continued concern over available supply.ÿ (WSJ) Visit our web site at infobeat.com.

To: CanStocks who wrote (7965)	10/24/1997 10:56:00 PM
From: kx	Respond to of 10482

CanStocks, please learn to listen to the market. Do not listen to anyone else. What is the market telling you right now ? Is the the BGO price going down or up ? What is the major trend of the BGO stock -- up or down in the past 3 months or more ? Is the price of the gold bullion going up or down in the past 3 months or more ? The market is always right. The major trend of the stock or market is the summation of all the supply and demand. When you invest or speculate, you are the at all out war against all the very intelligent, well research group of people. In the market, nobody is correct except the market itself which is shown in the price and volume.

To: CanStocks who wrote (7965)	10/25/1997 9:19:00 AM
From: virginijus poshkus	Respond to of 10482

CanStocks, a major looks at all of the variables, fixed costs are pretty well known. variables are selling price of gold and copper at the time of production and the costs of doing business which includes labor, taxes, maintenance costs etc. then they would use probabilities of these events occuring. their cost model is built with global economic considerations factored in. from this they estimate return on equity. so looking at the project today compared to one month ago, it is not as viable but it is still doable. we just don't know the terms. vargas

To: CanStocks who wrote (7965)	10/25/1997 12:58:00 PM
From: Terry Swift	Respond to of 10482

CanStocks: Bema and the majors negotiating for CC are using models and forecasts which project revenues and costs out to, not only when the mine will begin production, but over the entire life of the mine. The answer to your question is no, in my opinion. The current gold price is irrelevant to what these companies are projecting the POG to be over the next 15-20 years. Also, keep in mind, that forward selling of gold 3-4 years ahead of production, even right now, would mean selling gold in the 380-400 range. I'm waiting it out. You should do whatever you're confortable with. Terry