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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Lightning who wrote (4975)	12/31/1997 1:33:00 PM
From: IngotWeTrust	Respond to of 116753

Costs associated w/closings possibly???? Noticed w/Mirmar (MAENF) announced a $40M 4Q charge for closing t'day...so this particular yeard end selling off we've learned to associate w/buying ops in Canadian Resource markets I propose has a few more "announcements" t'come, thus prolonging this "buying opp" into 98! O/49r

To: Lightning who wrote (4975)	12/31/1997 7:24:00 PM
From: Ahda	Read Replies (1) \| Respond to of 116753

This might be of help to you the gentleman knows his SA gold stocks 4399. Searle Sennett on dec 22 1997 4:31am Zeev Some more statistics about SAf gold production from this morning's paper: 'Sixty percent of SA gold mines will slip into the red' David McKay ABOUT 60% of SA's gold mines would produce a cash loss in the December quarter with the rest being baled out by their hedging programmes, analysts said yesterday. The gold price was expected to average about $310/oz at an average rand-dollar exchange rate of about R4,80 to the dollar. This resulted in an average rand gold price of about R47 700/kg - R500/kg lower than the spot price in the September quarter, they said. Angus Auchterlonie, a gold analyst at SociTtT GTnTrale Frankel Pollak, said many more gold-mining companies would slip into the red if it were not for their hedging strategies. The Anglogold companies had the double advantage of a sensible hedging programme and some of the lowest cash costs in the SA industry. Anglogold would perform the best as a group in the quarter, Auchterlonie said. Worst performers were expected to be unhedged Gold Fields of SA, with high-grade Kloof Gold Mining Company dragged into the red by its high cost Libanon and Leeudoorn divisions. Driefontein, the company controversially involved in the proposed Gencor-Gold Fields gold merger, would have a "reasonable quarter", he said. Seismic activity at Hartebeestfontein and production problems at Eastern Transvaal Consolidated, gold divisions of Avgold, would spell a poor quarter for the group which had seen its share price slip on the Johannesburg Stock Exchange to below R3 from R12,55 almost a year ago. JCI, another poor share-price performer, hamstrung by its patent lack of direction, will give investors some good news in Randfontein which analysts expected could post a tidy profit. But the Harmony Group, troubled by two wildcat strikes and retrenchments, as well as former stablemate Durban Roodepoort Deep, were expected to report losses owing to their marginality, analysts said. The minerals bureau of the mineral and energy department said gold output was expected to shrink further this year. However, the decline could be contained by the restructuring in the industry in response to a lower gold price and rising costs. At a forecast average gold price of $336/oz, the dollar-export revenue should decrease by about 16%, the bureau said. "As the rand-dollar exchange rate is not likely to weaken significantly from its present level before next year, a decline of about 8,5% in export earnings from gold to R24bn is anticipated." >>>>>>> Looking further ahead, the bureau said that the gold price was expected to regain ground, reaching an average of about $390/oz by 1999. SA's gold production was expected to stabilise between 480 and 490 tons to 2002. to 2002.<<<<<<< "The likelihood of a recovery in output to a level in excess of 500 tons a year in the future can only be optimistically conjectured," it said. SA's gold production last year was 497 tons, the lowest since 1956 and more than 5% below 1995's output. PS. I must say $390 in 12 to 18 months time is not too bad! At this gold price the gold shares should be doing very well. But, perhaps we should get over the bear market first before we start fantasising about the future. There are still many hurdles to be crossed.