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Gold/Mining/Energy : Donner Minerals (DML.V) -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (10163)	12/25/1998 2:50:00 AM
From: Wizzer	Read Replies (1) \| Respond to of 11676

,If gold moves up to a mining profit level again ,there will be so much of that yellow metal hit the markets ,down she goes again.... I was hoping that the depressed gold and metals prices of late would cause many speculative stocks to go under for the health of the mining industry, and perhaps there have been quite a few but not enough in my opinion. Progressive or good results are often met with a decrease in price, while the market awaits the elusive massive sulphides that are of substantial length. There are not too many stories like that around. We have played this stock with expectation, and often reacted to what the market was telling us. Well, the market lied this year and gave many false signals that something was up, when indeed there was nothing. Looking forward to the New Year, and hope that this past year has made us a little smarter in our investing. Regards, Wisam

To: Sam who wrote (10163)	12/25/1998 11:09:00 AM
From: 1king	Respond to of 11676

Sam, the native land claims are not the problem The amount of nickel resources are one of the parameters that are counted along with a "claims settlement". These are inherent factors costs of production that shift the firms short run supply curve to the left. The change in price simply moves us along the respective market supply and demand curves. Therefore the price is less of a factor to a project start-up feasibility (e.g. Voisey) than the factor costs of production (e.g. mill, extraction, NSR, claims etc.). Because the these back-stabbing companies are are price takers (for all intents and purposes) they are restricted by the factor costs of productions FCP. They must try to reduce each FCP to be economic. You are right the bottom line is economics but the economics of a market (e.g. long run) are different from project economics. These news letter writers can only think as far as the price of a commodity. While very important in calculating NPV and the like there are many other features that have pronounced affects on any project. His comment about the Ni not coming from Voisey has far less to do with mining economics than theatrical penmenship. IMO 1King The problem with the pork and agriculture industries is price supports!!!! If the market was left to its own vices the equilibrium price and quantity would dictate production and there would be a lot less producers and waste. This type of collective action (interference) is a non-factor in most mining ventures. P.S. Hope SANTA was good to everyone:-)