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Gold/Mining/Energy : KITCO - Gold discussion -- Ignore unavailable to you. Want to Upgrade?

To: John Mansfield who wrote (42)	8/30/1998 5:24:00 PM
From: Mr Metals	Respond to of 989

They're the highest cost producers in the world. A lot have edged their gold forward though at much higher prices ($350-$425 an ounce) I would DROOY before RANGY. Both though are great buys just has long as the Global markets and the POG stop collapsing. Mr Metals

To: John Mansfield who wrote (42)	8/30/1998 5:49:00 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 989

<<What are the fundamentals behind SA mining stocks being hurt the most? >> Two reasons, IMO: 1) Very high costs producers. Of course, they have hedging programs in place..but I have read that they have not been as agressive as some NA seniors. 2) Some SA Golds have huge reserves ..however I am told that production capacities cannot be increased like they are in NA simply because reserves are concentrated in a few deep seated mines. This makes them highly dependent on higher prices.That would be the reason why Harmony and Durban are selling so cheap vs Barrick. I don't know as I did not verify this.