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Gold/Mining/Energy : Yamana Resources INC. T- YRI -- Ignore unavailable to you. Want to Upgrade?

To: kingfisher who wrote (1302)	6/5/1998 7:25:00 PM
From: Greg W. Taylor	Respond to of 2346

FYI re silver It is always useful to have informed independent opinions here, especially concerning more technical issues. Thanks. On the supply-demand side, it's obvious that silver's price should raise soon. (If only this were the only factor!) Here are some numbers supporting this case. According to the US-based Silver Institute, 1997 mine production -- about 510 million ounces -- and scrap recycling -- 150 million ounces -- fell short of demand by almost 200 million ounces. Demand is still greatest in the US, India and Japan, with each country consuming between 125 and 170 million ounces annually. The greatest industrial use -- 320 million ounces -- is in batteries and electrical / electronic-related goods, with the latter grouping growing the most. Silver used in jewelry and silverware accounted for about 280 million ounces (up by 5% over 1996), more than a third of that going to consumers in India. Photographic uses amount to about 230 million ounces. The largest growth in demand continues to be in the Third World. Greg

To: kingfisher who wrote (1302)	6/8/1998 9:48:00 AM
From: PSkars	Respond to of 2346

Hello r.Barbe; To answer your questions, first the gold mine closings; usually there is a cutback on production, then there is a scramble for cash, then there is the actual closing. Some happen faster than others, it depends upon how well financed they are. Take Royal Oak Mines (RYO) for example. They have a mine almost producing and ran into financial trouble....at the last hour, financing came thru to save the day. Without that they would be dead in the water. Obviously the key here is to be able to produce at a price lower than that which you can sell it for...and at 290-315, most of these mines are still on the positive side, with an average cost of production around probably $210/oz. And if you have other credits, like silver, lead, or zinc in the same cost, your profits will be higher. I think the real problems will come if gold drops to the $265 level. (I don't see this happening, but then again, anything is possible.) As for the reduction in base metal production, I agree with you. It will be beneficial for silver, especially with a reduction in copper production. Copper and silver always seem to be in the same mining operation. And with copper trading at $.75/lb that is a point where copper mines would consider cutting back if the margins are tight...so we should see this effect the supply side in the coming year+. Remember, the first thing that changes in any market direction has to be consenous...and I think that both the central banks and the mining companies have made that change...now it will take the fund managers and speculators to make the change for PGM's to take off. Best of luck, Phil