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Strategies & Market Trends : STOCKS WITH ATTITUDE TEAM - FA/TA AND EVERYTHING ELSE -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (1864)	1/25/1998 8:35:00 PM
From: James Strauss	Respond to of 2377

AU... >>>Jim, you're right. Cyprus Amax owns more than half the shares and they want to sell and are looking for merger partner for AU. Based on the latest news it looks like a merger candidate may have been found.<<< ************************************************ Sergio: In addition to merger potential, Amax is a low cost gold producer as this headline discusses: ................................................................. New Amax Gold Mines Result In Record 1997 Gold Production And Lower Cash Costs DENVER, Jan. 21 /PRNewswire/ -- Amax Gold Inc. (NYSE: AU - news; Toronto: AXG - news) today announced that 1997 gold production and operating cash flow rose significantly while cash operating costs fell by 22 percent compared with 1996. However, lower gold realizations and higher interest expense resulted in increased net losses. The Company reported a 1997 net loss of $33.4 million, or $.37 per share, on revenue of $259.5 million compared with a 1996 net loss of $39.2 million, or $.48 per share on revenue of $108.2 million. The 1997 results included a $4.5 million benefit for a first quarter inventory accounting change while the 1996 results included a $35.5 million write-down of the Guanaco mine and an unrelated $10 million deferred tax benefit. Excluding special items, the 1997 net loss was $37.9 million, or $.41 per share, compared with a 1996 net loss of $13.7 million, or $.21 per share. ...................................................................... As gold prices rise, it all falls to the bottom line for Amax... MACD and MoneyFlow are positive... There is very little resistance to 4 1/2... Jim