Globe says Dundee, rivals bid positive news good night
2008-09-09 03:24 PT - In the News
See In the News (C-DPM) Dundee Precious Metals Inc
The Globe and Mail reports in its Tuesday edition that gold mining stocks, particularly of junior firms developing new mines, have been ravaged lately despite strong bullion prices. The Globe's Andy Hoffman writes that investors have turned bearish on junior golds as access to capital needed to finance development projects has dried up. At the same time, hedge funds and other large investors besieged by the same credit crunch have fled the sector to stem losses, creating a violent and dramatic decline in gold miners' share prices. For the beleaguered juniors, the situation is particularly frustrating because the gold price, at about $800 an ounce, is about 15 per cent higher than it was a year ago. It seems that even when companies deliver good news, they are punished. Dundee Precious Metals chief executive officer Jonathan Goodman says, "In a bear market all news is bad news and in a bull market all news is good news." Goldcorp CEO Kevin McArthur says, "I don't think it's bottomed yet for the juniors. Who knows where the gold price goes from here, but we believe we are in a long-term bull gold market and prices will get better." He expects bullion to hit $1,500 an ounce in the next two years.
Van Sun/wire say Goldcorp boss sees $1,500 gold
2008-09-11 05:30 PT - In the News
The Vancouver Sun reports in a Bloomberg dispatch that Goldcorp said it has $1.2-billion in cash and no debt, putting it in a good position to make acquisitions amid a collapse in mining stocks. Bloomberg's Stewart Bailey writes the Vancouver company will look mainly in Mexico and Canada, where its largest operations are located, chief executive officer Kevin McArthur said at the Denver Gold Forum. At the same time, Goldcorp will push ahead, exploring for new sources of ore near its existing mines and developing new deposits, he said. Mr. McArthur believes the forced sale of assets by hedge funds is the cause of bullion's plunge by almost 25 per cent since touching a record in March. For smaller miners, the effect of lower metal prices has been made worse by the continuing credit crisis. "When sentiment is bad, and if you believe in the premise that we're in a long-term bull market, this is good time to knock on a few doors and take advantage," he said. "We're looking at another couple of possibilities here and there that look attractive for us." Mr. McArthur predicts gold prices, depressed by a "fire sale" of assets by hedge funds, could double to $1,500 an ounce in 18 months.
