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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (22069)	10/21/1998 1:56:00 PM
From: Enigma	Read Replies (1) \| Respond to of 116758

RH - yes, but!! It seems we say here, often, things like 'go depression' - forgetting that this will bring untold misery to most. We also talk too often as if gold is an all or nothing thing - whereas the prudent investor will invest in gold as an insurance - maybe 10 - 15% of his holdings. Remember that, whatever we might think, governments have the ultimate sanction in that they can make gold illegal to hold - and this did happen in the 30s. There would be a black market - maybe - but the idea investment should have high liquidity. The old cliche about not having all one's eggs in one basket still holds. Too often gold becomes a state of mind, a panacea for all the frustrations in life. E

To: long-gone who wrote (22069)	10/21/1998 7:29:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116758

Richard, I am not sure that anti-Gold people fully realise what is going on in the industry...Any productivity gains and streamlining that they boost would simply pale in comparison to the mining industry..more so if POG ends-up below $250, most of their portfolio would be de-cemated (cataclysmic event prompting CB's to sell) and Gold still would buy much more than currency at this level, especially outside USA and some would surely move to say Australia to the Beach House..:) Driefontein posts sharp Sept turnaround 06:32 a.m. Oct 21, 1998 Eastern By Darren Schuettler JOHANNESBURG, Oct 21 (Reuters) - South Africa's Driefontein Consolidated Ltd reported a dramatic turnaround on Wednesday, with quarterly profits soaring on the back of a diving rand and higher gold output. Driefontein, one of South Africa's premier gold mines, also warned that its restructuring will continue with a ''critical review'' of two shafts and a planned reduction in throughput. Distributable income soared to 139 million rand ($24.14 million) in the quarter to September 30 from 8.5 million rand in the previous three-month period. Gold output improved by seven percent to 11,524 kg, while production costs dropped three percent to $192 an ounce, despite a nine percent wage increase. The results beat analysts' expectations, but failed to impress investors who pushed Driefontein's stock down two rand to 33.40 rand on the Johannesburg bourse. ''They were ahead of expectations by quite a bit,'' said Greg Hunter, a mining analyst with Deutsche Morgan Grenfell in Johannesburg. He had forecast earnings per share of 48-50 cents compared to the company's 68 cents for the quarter. Driefontein is the latest South African gold producer to report sparkling results for a quarter in which the local rand currency slumped by 20 percent against the dollar. South African mining firms sell their bullion for dollars, but pay costs in rand. The company also announced a deal to exchange mineral rights in two areas with major shareholder AngloGold. AngloGold and Gold Fields Ltd, the world's two leading gold producers respectively, together own 60 percent of Driefontein. The gold giants ended months of bitter wrangling in July and agreed to share Driefontein, the country's most coveted mine, through a 60-40 joint venture that favours Gold Fields. However, the companies have not yet made an offer to buyout minority shareholders. Under the mineral rights deal, Driefontein and AngloGold's Western Deep mine will exchange rights on two areas estimated to contain over 13,500 kg of gold resources each. The areas border the common boundary between Driefontein and Western Deep and effectively redefines the mining boundary along geological lines instead of old farming boundaries. AngloGold chief executive Bobby Godsell said the rights exchange would release gold reserves that could have remained locked underground indefinitely. ''Co-operative deals like this...are putting South Africa back on the map in the minds of international investors,'' Godsell said. On the production side, Driefontein benefited from a reduced amount of uneconomical ore mined during the quarter. The No. 1 and No. 7 shafts are under review because 70 percent of the ore mined at these shafts is below the pay limit at current gold prices. The company's productivity jumped by 16 percent in the September quarter. Management trimmed 400 conractors from the payroll since June. Suspended work on Number Nine and 10 shafts cut capital spending by 28 million rand to 105 million rand. Driefontein expects capital spending to rise to 274 million rand over the next six months from 238 million rand in the past half year. During the quarter, the board completed a review of the mine's capacity and decided to cut throughput to 300,000 tonnes per month during the next three to five years. Plans to upgrade the metallurgical plant to boost gold recoveries and productivity will be finalised in 1999. ($1 - 5.757 South African Rand) Copyright 1998 Reuters Limited. All rights reserved. Republication and redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Search