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Gold/Mining/Energy : Pegasus Gold (PGU) hits 52 week low -- Ignore unavailable to you. Want to Upgrade?

To: Eashoa' M'sheekha who wrote (29)	11/16/1997 3:03:00 AM
From: Greg Ford	Read Replies (1) \| Respond to of 199

It is going to be extremely difficult for PGU to survive given the current gold price. They have a significant amount of debt to repay and may have to monetize their hedge book to do so. If this occurs they will have little or no price protection in the future. It is unlikel;y they will be able to get credit lines to hedge even if they want to. Mt. Todd has proven to be a disaster. PGU, ECO and other high cost producers are not going to be able to survive unless prices increase quickly. Presently PGU's market cap is somewhere around C$360 million whereas there book value is negative $88 million. They had better pray for higer prices. Greg