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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (1238)	6/3/1999 7:13:00 PM
From: Ron Everest	Respond to of 3558

It would have been nice to see them acquire ARP, however, that wasn't to be at the price that ABX was willing to pay. My read on the ARP value is that there are a LOT of properties that can be acquired very cheaply and Barrick simply ranks them according to their relative values. This is good business on the part of ABX. I would expect them to continue to pick up promising properties at very low prices. The TNX property option etc is being acquired at a very low price. TNX was out of cash and the ability to advance their property, thus, ABX was Johnny on the spot. The key IMO is in the following statement from the release: <<Barrick must make a positive production decision with respect to the property either on a ''stand alone'' basis or by treating the ore from the property in Barrick's adjoining Bulyanhulu mill on a custom milling basis.>> The TNX property will provide low cost ore to Bulyanhulu and the risk of proving it up will likely be small. Barrick by this time has been able to go over all of Tan Range's numbers in detail and is betting on the probabilities on a sound basis. There will be more low cost additions to the ABX stable in the future with Gold at such low levels. Today, it was interesting to see ABX move ahead and PDG stay put..