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Gold/Mining/Energy : Dakota Mining DKT -- Ignore unavailable to you. Want to Upgrade?

To: bob k who wrote (118)	4/20/1999 8:37:00 AM
From: bob k	Respond to of 141

NBN Your Money: Buy, Sell, Hold on gold WebPosted Mon Apr 19 20:33:05 1999 TORONTO - It's been a long time since investors have paid serious attention to the gold sector. But after the recent recovery in other commodity prices, many analysts are saying gold may be next in line. John Embry is one of those industry watchers. John is the Vice President of Equities with Royal Bank Investment Management and says there are a number of companies investors may want to now think of buying -- and a few they may want to avoid. The gold market has been vastly oversold for a long time now, says Embry, and is looking for the slightest provocation to begin its recovery. Last September, for example, the index went up 75 per cent in five weeks. And demand for gold is as high as ever --in fact, the fourth quarter of 1998 was the best quarter in history. Embry also says that mine supply is falling. That means the gap between supply and demand will widen and send the gold price up. He says he believes the upside potential of gold is going to be "quite significant" sometime soon. So if you're looking to invest in gold, now is the time. But with so many gold companies hurt by the recent long stretch of low gold prices, there is a very short list of companies left that are in good enough shape to benefit from the gold price surge that may be just a round the corner. But there are a few: •Euro-Nevada •Franco-Nevada •Meridian •Goldcorp All of these companies have either brought in or are about to bring in a very rich, profitable ore bodies that will do very well even in these depressed gold prices. Embry recommends holding on: •Kinross "The company does not have a particularly strong balance sheet," says Embry but could turn itself around with a rise in gold prices, so there is a possibility an investor could make a lot of money if gold goes up. Two companies that have very poor balance sheets and that Embry recommends avoiding are: •TVX Gold •Echo Bay As for Barrick and Placer Dome, Embry says they are already overpriced stocks and so, will not rise significantly in price if the price of gold begins an upward swing. cbcnews.cbc.ca. DKT $45 or Bust!

To: bob k who wrote (118)	4/20/1999 8:40:00 AM
From: bob k	Read Replies (1) \| Respond to of 141

Le Metropole members Midas du Metropole has served commentary at the James Joyce Table. "yes Swiss vote fails to hold back gold market" "silver stong again- now up 30 cents in 3 days" "gold stocks smoking" "Peabody, gold, and the stock market" "ECU Gold Mining, Golden Star Resources, and Durban Deep" Today was a first for GATA. John Meyer, our Treasurer, received our first unsolicited vote of support by a gold company. It is Kalahari Goldridge Mining Company Limited in South Africa. They asked to go up on the Honor Board so we think it is appropriate to tell you what they had to say: Hi there John Kalahari Goldridge Mining Company Limited is a small gold mining company in South Africa and are fully supportive of your endeavours. We have requested our bank to transfer US$ 500 to your Berkshire bank account and will appreciate it if you can include our name on the GATA LIST OF HONOR. The Cafe's John Brimelow specializes in South African gold shares. He knows the Chairman of Kalahari and he says it is one fine company. GATA is just beginning to make its impact and Kalahari will go down in history as one class act. They have Midas du Metropole's attention and we want to spread the word about them. Their website address is: mbendi.co.za. The Gold Anti Trust Action Committee salutes this South African mining company for its guts to take a stand. We hope that they will not be one of a kind and the rest of the gold industry will also support our efforts to help them help themselves. Speaking of shifting gears. The following press release will go out tomorrow at 8 AM. Larry Roth, of Roth Investor Relations, who is highly thought of in the gold industry is handling it for us. CONTACT: BILL MURPHY CHAIRMAN GOLD ANTI-TRUST ACTION COMMITTEE E-Mail: lepatron@lemetropolecafe.com Web site: www.gata.org FOR IMMEDIATE RELEASE: INVESTIGATION OF GOLD PRICE MANIPULATION LAUNCHED BY GATA; BERGER & MONTAGUE RETAINED AS COUNSEL Rye, New Hampshire, April 20, 1999 ---- Noted antitrust and securities law firm specialist, Berger & Montague of Philadelphia, has been retained by the Gold Anti-Trust Action Committee (GATA) in order to assist in its investigation into the alleged manipulation of the gold market. The law firm is best known for its successes in recovering billions of dollars in damages in the Drexel Burnham/Michael Milken junk bond case, The Exxon Valdez case, and recent tobacco and Holocaust cases, and many others. Bill Murphy, GATA Chairman stated that the organization now has evidence that the price and supply of gold are being controlled by a cartel of Wall Street investment houses and bullion banks with the possible encouragement of the Federal Reserve and the U.S. Treasury. “This collusion,” said Murphy, violates anti-trust laws and exposes the perpetrators to triple damages. “It has been devastating to the entire gold community.” The major federal antitrust laws are the Sherman and Clayton Acts, but there are others, and many other states have their own such anti-trust laws. Whenever two or more parties cooperate in limiting prices or supplies of a product or service, the free market is defeated and antitrust law may be broken. “For the first time, the gold industry is speaking out on the record and in specifics regarding what they have suspected for years,” said Murphy. He cited Friday's published report quoting Chris Thompson, Chairman of South African-based Gold Fields Limited, one the largest producers of gold in the world. Thompson accused “New York–based bullion dealers” of spreading unfounded and persistent rumors about its forward sales program in order to “talk the gold price down.” -more- Page two Speaking here today, Murphy stated, “In some cases the gold market manipulators are quite open about their activities, though most are conducted in secret. They don't think that the law applies to them, or that anyone would be so bold as to try to hold them accountable under the law”. Murphy went on to say “We believe one of the reasons that various financial institutions are acting in concerted action to hold down the gold price is that they are now short hundreds of tons of borrowed gold and that the speculative community in toto is short 3,000 tons, or more.” Yearly worldwide gold mine supply in 1998 was only 2,529 tons. Essentially, many of these institutions are borrowing gold at 1- percent interest, selling the gold into the market, and using the proceeds to invest elsewhere. This “gold carry trade” is similar to the “yen carry trade” that caused such problems internationally last year”. Such gold loans are cheap only if the price of gold holds steady or declines. Even a modest rise in the price of gold would make such a loan terribly costly, as principal repayment would become onerous. The evidence GATA has compiled suggests that gold loans have become so large that an international “systemic risk” problem has now been created. For if the price of gold rose unexpectedly even to a moderate degree, many gold borrowers would not be able to find enough gold quickly enough without driving the price into the stratosphere. That is one of the reasons that we believe certain financial entities have been manipulating the market in collusive fashion to make sure the gold price does not rise sharply above $300. The antitrust lawsuit GATA plans is now in the investigative and research stage, and GATA is seeking help from the gold community: financial contributions in support of the lawsuit; potential plaintiffs for the lawsuit; and potential witnesses willing to provide information confidentially about gold market manipulation. GATA also hopes gold company shareholders all over the world will contribute and support its efforts. Chairman Bill Murphy stated: “The supply demand numbers tell us that if the excessive gold borrowings were just normalized the equilibrium price of gold today would be between $400 and $500”. GATA is incorporated in Delaware and has applied for tax-exempt status under the U.S. Internal Revenue Code. The organization is actively involved in alerting members of Congress to this situation including offering its views on the proposed IMF gold sales. GATA has already scheduled meetings in Washington with Jim Saxton, Chairman of the Joint Economic Committees, among others. Contributions to GATA may be sent in care of John D. Meyer, Treasurer, at Box 885 Great Barrington, MA. 01230. #####30###### Le Metropole Cafe All the best, Bill Murphy Le Patron