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Gold/Mining/Energy : ARP - V Argentina Gold -- Ignore unavailable to you. Want to Upgrade?

To: james flannigan who wrote (2442)	1/31/1999 7:13:00 PM
From: tanoose	Read Replies (1) \| Respond to of 3282

Hello James; My thinking hasn't forgotten anything?? when you see some of my posts it is also thinking outloud?? " Frank,your thinking forgot one most important fact.ABX burnes about 4.4 million oz of reserves per year,out of a total of 50m oz.To replace reserves they can not buy 200,000 0z deposits to maintaine the book value of the company. It is not cost effective." NO kidding?? and tell me which company does not have a burn rate?? "Last year they had to shut down their high cost mines in this low gold price erea." Name me someone who didn't??...............those mines quickly reopen when POG goes back up?? as do many other deposits, that are just sitting waiting for the right price?? "ABX NEM PD and the like always pay very close attention when a world class deposit is found,if this is what we truly have.To keep up reserves they have to be bought in a low price or high POG." Really when did that statistic come to light, Now I supose your going to tell me that PDG is gonna come running in and just open up the coffers to get down and dirty in an old fashioned bidding war with Barrick, if you have been watching closely PDG has just about dried up their till, so you can already discount them coming into this fray?? All their recent investment commitments they have already diluted themselves, they have just incurred a record increase in the short position of PDG shares, they still as of yet finished financing Las Cristinas, seems to be on perpetual hold?? As for Newmont, last time I looked they had a joint venture or two with Barrick in some stange place called Nevada. Also have you overlooked the mentioning of some sort of joint arrangement with Anglo Gold early on this year...........had something to do about co-operating with each other on future endeavours?? So lets look a little deeper, who is it exactly is going to be the White Knight in all of this, your running out of majors?? "Be assured if Ludins are correct in their assement of the deposit being "world class" it will not sit for long before one of the big guys takes it out,simple economics points this out,there is a shortage of world class deposits.The forces of supply and demand rule in the end." Please understand something, I agree with you, in certain aspects, but the simple fact is Barrick has control, and can always outbid, simply because they have the UPPER hand with the economics in this area?? Their other deposit gives them the upper hand with economy of scale?? And that is the way I see it?? otherwise we would have seen another bid already?? With regards,Frank