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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Zardoz who wrote (220)	12/5/1997 12:50:00 AM
From: TLindt	Respond to of 3558

Could be looks like this gal agrees................. Gold Stks Fall To 52-Wk Lows, But Analysts See Bottoming By Rebecca Wolf NEW YORK (Dow Jones)--Gold stocks dropped to 52-week lows Thursday as the price of gold continued to fall in the high $200 range. But analysts say they expect gold to bottom out in the next few weeks, and see an upturn at the new year. In London, gold was fixing at $289.35 an ounce Thursday afternoon. Analysts attributed the recent drop in the price of gold to selloffs from the central banks as well as from individual investors. "It's just plain ugly," said Steven Porter of Elliott Wave International. "There's been a blowout." But Porter said he expects to see an upswing at the start of 1998. "From a technical perspective, gold is entitled to a sharp-snap rally," he said. ABN AMRO Chicago Corp. analyst Todd Hinrichs agreed. "In the next two to three weeks, we should see a bottoming out (of gold prices)," he said. "But then prices should firm up." Hinrichs said one reason he expects gold prices to increase is that "many mines are insolvent." As production decreases, he said, supplies will be lower. The demand for gold, which increases especially at lower prices, will then put upward pressure on prices, he added. Until gold prices improve, most of the stocks in the sector will likely be weak, analysts said. Virtually all large-cap gold stocks posted declines Thursday, and most fell below 52-week lows set earlier this week. Leading the losses was Amax Gold Inc. (AU), which earlier fell to 1 15/16 and was recently down 1/8, or 5.9%, to 2 - the level of its previous year low set Tuesday. Placer Dome Inc. (PDG) dropped to 11 1/16, below the previous 52-week low of 11 3/4 set Wednesday. It was recently trading at 11 1/8, down 11/16, or 5.8%. Coeur D'Alene Mines Corp. (CDE) fell to 7 9/16, past the year low of 7 7/8 set Wednesday. The stock was recently down 3/8, or 4.7%, at 7 11/16. Battle Mountain Gold Co. (BMG) declined 3/16, or 4%, to 4 1/2. Earlier it dropped to 4 7/16, below its 52-week low of 4 5/8 Wednesday. Newmont Mining Corp. (NEM) lost 15/16, or 3.2%, to 28 3/8. Its low Thursday of 28 1/16 was below the previous year low of 29 5/16 set Wednesday. Barrick Gold Corp. (ABX) earlier dropped to 15 7/8, below the 52-week low of 15 15/16 on Monday. The stock was recently trading at 16, down 7/16, or 2.7%. Homestake Mining Co. (HM) fell 1/4, or 2.5%, to 9 3/4. The day low of 9 11/16 dipped below the year trough of 10 set Wednesday. Remaining above its 52-week low of 2 1/16 set Monday was Echo Bay Mines Ltd. (ECO), which was trading at 2 3/16, down 1/8, or 5.4%. "Dow Jones News Service" "Copyright(c) 1997, Dow Jones & Company, Inc."

To: Zardoz who wrote (220)	12/5/1997 12:55:00 AM
From: TLindt	Read Replies (1) \| Respond to of 3558

And then there is just a little more to brighten your day........Let'm trash these things and then snap'um.............. Gold Stocks -2: Hedging Seen Helping Maintain Profits Hinrichs, of ABN AMRO Chicago Corp., said he expects the average price of gold to rise to $325 an ounce for 1998. Peter Ward, an analyst at Lehman Brothers Inc., has a more bearish view. He said he set a 1998 gold price estimate three weeks ago of $300 an ounce. "That (estimate) was certainly the most bearish estimate then," he said. "Now it looks optimistic." Ward said he fears that even if gold recovers slightly in the near term, the longer outlook for the sector is still weak. "My concern is that the equities have not discounted enough ... in terms of cash flow," he said. He acknowledged that certain stocks, such as Barrick Gold, which are fully hedged, could "survive a terrible environment in the near term." Hedging, a common industry practice, locks in a price for the mining companies' gold production. Analysts said those companies who are hedged, or partially hedged, will not see much of an effect on their 1997 earnings from the weakness in gold prices. Newmont Mining is one example. According to Jack Morris, vice president of corporate relations, the company benefits from hedging about one-third of its production. "And we expect to report solid earnings for the quarter and for the year," Morris said. - Rebecca Wolf; 201-938-5166 "Dow Jones News Service" "Copyright(c) 1997, Dow Jones & Company, Inc."