To: Mike Gold who wrote (9023 ) 2/9/1999 11:13:00 AM From: Handshake™ Read Replies (1) | Respond to
Great lesson to be learned from watching ARP's meteoric rise of late. Could it be that Barrick already has 40% of it, which is better than nothing, and will be complacent to see if ARP survives. If ARP should stumble then of course Barrick benefits. Could it be that Barrick has other more interesting properties that have caught their eye..ie. the LiPangue or Las Dos Marias. We have known for quite sometime that 6 or 7 majors have been snooping around the Medinah store front. IF Medinah does prove that its LiPangue is the start of the next "El InDio Belt" then Barrick would be better to save that 180 million for a few more weeks just in case. Of course to take out Medinah for all cash it would take at least $10 (IMO folks...don't bash me I'll chew you up and spit ya out! )...I don't think any major..Newmont, Homestake, Barrick or a host of others will cough up a billion dollars to buy reserves. What their next step will be is to fish just like Barrick did with ARP. I believe a major will try to get a joint venture, and that way only have to cough up 80 - 150 million, then just sit back and wait for Medinah to stumble. If the majors are asked to buy the whole shooting match then I believe they will low ball it at 300 million or so and wait.....Its a balance sheet thing and with the price of gold the way it is they are not feeling very comfortable betting the farm on the "El Medinah Belt". Will I be wrong on my assumptions, we shall see folks...but suffice it to say, we are in for higher prices, and lets keep our fingers crossed on the drills. We could be at $5, if the company would have had the luxury of announcing a credible fact such as the Dayton decision, the Andacollo sell, the Placer deal with the Russians, the Caten production, etc.
