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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Famularo who wrote (802)	11/5/1998 10:21:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 3558

Operating costs dropped 14%! Glad this is in my fund's portfolio. If we take the stock price basis to be 20, set the implied inflated growth of money at(14 - 2)%, introduce the production leverage at 14%/2,compound for 3 years, we have 20 x(1.12 x 1.07)^3 = 36. That assumes the price of gold will remain constant. If the latter is a bad assumption, just take a price for gold, divide by 300 and multiply by 36 for expected future price of ABX in 3 years.e.g. gold at 450/300*36 = 54. That is, it will get down to 54 in the nasty correction from the heights it will reach in 2000.