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Gold/Mining/Energy : JAB International (JABI) -- Ignore unavailable to you. Want to Upgrade?

To: Lawrence Burg who wrote (2156)	12/15/1997 11:05:00 AM
From: DDS-OMS	Read Replies (1) \| Respond to of 4571

Larry, Dont know if I can fully answer your question, but generally, production is sold when there is enough to make a sale worthwhile. BCMD showed no revenue for last quarter, but some gold was poured in September, but none sold--hence no revenues, as the gold has to be sold to realize revenue. In the present downtrending price of gold, what you hold today is likely to be worth less tomorrow--in fact gold is worth about $40 an ounce less than it was at the beginning of this quarter. I'm sure not every little button poured is sold immediately, but as soon as enough is on hand to make a sale worthwhile, it would be sold. It only makes sense to sell gold as soon as possible in a downtrending market, but perhaps be slower selling it in a rising market. Major producers, like Barrick, have been selling their future production for years--I think Barrick has sold forward their next 2 years of production at around $400/oz. This option isn't available to someone with no track record like BCMD-- so they can only sell it as it is produced, and get a percentage of the current spot price for gold--not 100% of spot price--because further refining has to be done. Regards, Gary