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Gold/Mining/Energy : Pacific Rim Mining V.PFG -- Ignore unavailable to you. Want to Upgrade?

To: Bill Jackson who wrote (8685)	2/17/1998 9:27:00 AM
From: Enigma	Respond to of 14627

I don't want to make this into a two person dualogue - but when gold went to $800+ per ounce Barrick did not exist, and Peter Monk was still in the Pacific! The company I worked for wasn't looking for bids from anyone, not then anyway. I better stop waxing philosophical - the point I was making was that if gold stays much longer at these levels there will be a lot of hurt in the industry - fundamentally. Stock prices may shoot up it gold goes up too, but unless gold STAYS up at much higher levels many mines will have to close down. If you are a gold bug for the long term you have to hope that the mines supply side of things drops - from a social point of view this means a lot of hardship for miners. The problem with being a gold bug is that you hope for bads news all the time!. The midddle east situation could be one of the reasons why the gold price may be firming. The trouble has been (from the gold bug's point of view) that gold hasn't reacted to world crisises as it used to in the past. On of Peter Munk's strengths has been that he is not a gold bug. He has not taken chances on the future price of gold. This has meant that they have been able to concentrate on the production side of things They instituted a very clever hedging program, which not only fixed their selling price for years ahead, but they combined this with a sophisticated call options program which means that they participate in an upside move in gold over and above the price they have fixed for the product. WE have been used to equating Munk with Barrick, but now that Trizec Hahn is out of the picture, I wonder how much time he can devote to Barrick now. He is still a shareholder, and Chairman, but Barrick is now a management led widely held company. I wonder if Munk knows much about Pacific Rim, if anything.