Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : A "A" list of JR gold mining companies -- Ignore unavailable to you. Want to Upgrade?

To: Jeff who wrote (36)	9/14/1998 12:29:00 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 169

Thanks for the link to DRD website. DO you have one for Harmony ? SO they produce some 600,000 ounces per year at a cost $300/share...well that is good for a market cap of US$200-300M or so... with gold below $300..So the shares looks undervalued now...and could trade near $5-6. I guess the political risk (if any) but more so the high production costs and the current long term trend in the price of gold are responsible for the discount. One thing that confuses me is the number of shares out...48 millions or so. Does that included the ADR's listed on Nasdaq? I tought that each ADR was the equivalent of 10 SA shares...It doesn't seems to be so when I look at the current price of US$2.50/adr and 15.50R/share.. Given the current exchange rate, that looks like 1ADR = 1 share. Anyway, lets asume 54M out fully diluted and a price of gold near $500.. I'd say that DRD would certainly trade in the double digits..probably closer to $20-$25 rather than $50. But again, all depends what comes out of their other projects like that big deposit under Johannisburg.. Amazing how these SA golds are priced by the market !! CC