GENERAL32236

• Permit No: M1988112
• IBM Index Class Name: General Documents
• Doc Date: 7/5/2000
• Doc Name: EMAIL GOLD IN THE NEWS 07-05-00
• From: MARCELO MAIDANA
• To: BRIAN ANDERSON
• Media Type: D
• Archive: No

33.3x6.6 m~ilion fr2n•:5 aver the 1C-day tc end June. A revaluation of its
go!d~at the end of the second quarter accounted for the large drop, with
the oNB using a p~i~c of 15.106.6 franr"s per kg at June 3~l as compared
with a price of !',29!.~ franca on May 1. AnalystE said actual sales over
the previous t0-day ~er~od worked out between 11 and 12 tonnes. fhe SNB
sa;d two weeks a;o ~ nod .so;d 40 tonnes of excess gold to date. Ile
timetable tails for s~"~n3 120 tonnes by the entl of Se~temper vie the
Banf for Inlernaticna. Sylttements. "Europe Platinum fletaia Softer On
RUSS"la NBwE." Reu!G,?. 7rw'00; "Europa Gcld Nc Reacbar S!v8, Guiet With
ll.~ tireak." Reuter; 7'3!00.
l~iL pF;,~~~
AU°T;~AUP.N RESGURCE BODh1. Ausvalia's minerals and energy production hit
record levels this year, exports of metals, minerals and energy
commodaies also hit •ec•:rd lere~s and the year-end graft reporting
season for Austrolan resource companies, just around the corner, will be
impressive, say ana , ~as. A combicahon of the weak Ausira!ian dollar,
increasing revels o' cro7uction, argress've cost cutting and :'re recovery
in industrial commac;y prices over the past t8 months have buoyetl
returns. gut thle Austra~ian dollar, which at 6Dc effectively Drcwdes a
a0 percent income "test on any unhedged export saiea, is "the bigg
differentiating factor,' said Dennis Mahoney, eccncm~st with BNP Penbas
in Sydney. In the Australian geld sector, ifs the same story, says
Greg ?ernes. chief executive of the Australian Gold Council. The weaker
tlallar boosts profits cut so does the Cost reduction ef!orts and
continuing use of nev. terhnologies by Australian gold producers, Bames
says Tha timing of the Australian resources boom coincldea with
accelerating conso!~dzticn :n the global resources Intluetry. Already
Australian u^mpanies are attractlva on a priWesrninga basis, but they
are also cheap "from an asset pla~r perspective" because of the soft
Ausvalian dollar, says ore Austre~ian rninmg analyst In short, the
weaker the Australian :collar, the cheaper Australian companies becare in
U.S. collar, sterling or euro terms. The strength in the resources sector
todzy is partly due rc unpprecedented explorailon and capital expenditure
In the mid 1990s, acc~rr:ingg tc the Ausvallan Bureau of Agri,:ulturel and
Resource Economics :ABAR.E;. It triggered a massive axpensron fn new
prc~ects. Over the 18 months to 7eeember 1999, 53 projects were
commissioned at a capital cost of more than $14 ttillion. Now, the rate of
expansion is siotiving. In the six rion[hs ending June 2000, ABARE reports
that 9 big minerals and ene projects were completed et an estimated
capital cos[or $1.d billion. Sti I, Ausvalian mineral and energy
Production. continues to r'•.se. After 3 strongg I.ncreaes of 12 percent, it
is forecast by AGAR= to rise again in 20D0/1001 by 2.2 percent. "The
Ttming Of The Australian Resou•ces Boom Coinadea With Accelareting
Consolidation In The Global Industry." Financial Tlmea (London!. Steve
wyaa. 7!x!00.
VENEZUELAN UL T IMAT~Pub. Placer Gonna, rJOrth America's third largest gold
prooucer, said ~t was negotiating to retain rights to develop Venezuela's
Las Crlstlnaa gold deposit without commi:tin9 Itself to tlang so. The
cernpany was :espcnding to threats by Its Venezuelan partner, which saki
the CCanad~an group must agree within 15 working days to dsvebp the
Pro)ect, one of the world s biggest undeveloped gold deposits, or risk
ostng the rights to :ne concession. Corporecion Venezolana de Guayana
(C I )the Venezuelan heavy IndusVies state holding company that
controls 30 percent of the project. hoe eaid it couk+ award the
concession to another partner if Placer Dome was not willing to proceed.
Placer Dome has rights to 70 percent of the project CVG's oosltlon was
prompted by Placer Dome's enncuncement .fast month that it would not
restart constructbn on the mine because the projeC. was rat economically
viable given current bullion prices. The company halted construC.ion of
the rrune in July 1999 as d became apparent gold ppries would not
rebound. CVG s ultirttatum followed a meeting In Venezuela on Monday
between Jay Taylor. Placer Dome president and chle/executive, and
Antonio Lopez Reins, prsaidant of CVG. CVG sold that the two companies
agreed to set up a commission that would deckle within 15 days whether
P ever Dome would either go ahead with the project or give up Its fights.
Under the terms of the partnership CVG can start kgal praceedinga t0
•esclnd Placer Dome's rights h~ the property if the project is suspended
for more tnan 12 months. "Placer Dame Faces Venszuslan Ultimatum."
Flnenclal Times (London!. Scott Morrison entl Andy Webb-bidai. 7,~5ID0.
:21 No.i10= ~.C~