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

To: IngotWeTrust who wrote (24115)	12/10/1998 10:11:00 PM
From: Giraffe	Respond to of 116972

Canadian gold stocks shine as markets tumble TORONTO, Dec 10 (Reuters) - Shares of Canadian gold producers rose on Thursday in step with a downward draft in North American equity markets and growing fears that a two-month stock bubble might be about to burst. The Toronto Stock Exchange's gold and precious minerals stocks gained an average 4.1 percent, which helped to cushion an overall drop in stock prices. The benchmark TSE 300 index fell 90.52 points to close at 6315.78 New York's Dow Jones Industrial Average also tumbled 167.61 points to close at 8841.58. Gold, a traditional hedge against uncertainty in financial markets, had been trading in a tight range between $292 and $296 an ounce for the past month as investors rushed to hold equities. It traded at $294 an ounce on Thursday. ''It (gold) has been stuck in a range because the stock market bubble continues. My sense is that whenever that ends you'll start seeing some of that money overflowing into gold,'' said John Ing, president of Maison Placements Canada Inc. ''We're seeing a little bit of that action today,'' Ing added. Senior gold producers Placer Dome Inc. (Toronto:PDG.TO - news) and Barrick Gold Corp. (Toronto:ABX.TO - news) were the major beneficiaries of renewed confidence in gold. Vancouver-based Placer soared C$1.50 to close at C$22.85 a share, or 7 percent, while Toronto-based Barrick climbed C$1.60 to C$30.20 a share, or 5.6 percent, on the TSE. Canada's gold stock index, which accounts for about five percent of the TSE 300, has gained about 44 percent since August 31, but it remains about 4 percent lower than its 1997 close. ($1=$1.54 Canadian)

To: IngotWeTrust who wrote (24115)	12/10/1998 10:13:00 PM
From: Giraffe	Respond to of 116972

Large Australian miners under takeover scrutiny By James Regan SYDNEY, Dec 10 (Reuters) - Speculation is rife in the Australian share market about potential takeovers of some of the nation's largest miners. If a barrage of research and comment among brokerage houses proves correct, Australia's largest gold miner, Normandy Mining Ltd , a leading producer of uranium and timber products, North Ltd , and zinc and coal miner Savage Resources Ltd are all in play or about to be. The Australian dollar sunk to a low of around 55 U.S. cents this year, and has only managed to climb back to around 63. While a weaker Australian dollar boosts revenues for minerals exporters, it also makes them attractive to offshore predators. International metals group Billiton Plc (quote from Yahoo! UK & Ireland: BLT.L) has led one of the most recent metals takever and is now in the final throes of a 90 cent a share hostile bid for nickel miner and refiner QNI Ltd in Queensland. Shares in Normandy, which produced 1.73 million ounces of gold last year, have traded as high as A$1.60 after starting the week at A$1.47 when a report by Credit Suisse First Boston analyst Michael Slifirski suggested in a report that a takeover by U.S.-based Homstake Mining Co (NYSE:HM - news) was in the cards over the next six months. Some share brokers also suggested on Thursday that the proposed 85 cent per share takeover of Savage by the bigger zinc group Pasminco Ltd , may be complicated by a second bid from an undisclosed party. Meanwhile, rumours last week centered on a possible joint bid for Pasminco by Billiton and Canada's Noranda Inc (Toronto:NOR.TO - news). Neither Noranda or Billiton have commented on the rumour. Problems with environmental protests and a negative report from the UN's World Heritage Bureau on the planned Jabiluka uranium mine in the Northern Territory have contributed to North Ltd being tipped as a likely takeover target. The stockbroking firm Ord Minnett told institutional clients that North subsidiary and operator of the mine, Energy Resources of Australia Ltd , had received a political setback from the criticism of the mine. ''This does not change Ord Minnett's valuation or recommendation on North since Jabiluka has never been included in Ord's valuation,'' the broker said in a note to clients. ''With negative sentiment weighing on North it is now ranked as Ord's most undervalued resource stock following the takeover of both Savage and QNI. Will it be the next target?,'' Ord asked. ''North has the following in common with Savage and QNI: it is at a heavy discount to its net present value and it is out of favour because of the commodity cycle -- iron ore and uranium,'' Ord said. "However, unlike QNI and Savage it (North) has strong earnings, a low price/earnings (ratio) and no major capital commitments. Billiton has stated publicly its desire for iron ore and copper together with less South African exposure. ''Anglo American's preferences are yet to be disclosed,'' Ord said. North shares ended three cents higher at A$2.80 on Thursday, two cents off its 12-month low and was below its year-high of A$4.54. It ended the day with a market capitalisation of A$2.09 billion. Savage shares ended two cents higher at 91 cents on turnover of more than two million shares and a market value of A$483 million. Normandy ended steady at A$1.57, with a market value of A$2.67 billion. --------------------------------------------------------------------------------