Replies to post #228 on PHLX Gold/Silver Sector (XAU)

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To:William Jones who wrote (255)
From: John Barendrecht Monday, Jul 7, 1997 9:40 AM
Respond to of 80032

Randgold drops on mine closure news
JOHANNESBURG, July 7 (Reuter) - Shares in South Africa's Randgold and Exploration Co Ltd dropped sharply on Monday following news that its East Rand Proprietary Mines Ltd (ERPM) (ERPL.J) has decided to cease operations at its Benoni Gold Mining Co Ltd as soon as possible due to the slide in the gold price.

By 1050 GMT Randgold had dropped 245 cents, or 12.28 percent, to 17.50 rand, while East Rand fell seven cents to 120 cents.

The firm said the decision was prompted by the prevailing low gold price and operating losses incurred by the company over the past two months. It added that management and labour are currently engaged in negotiations to discuss the implications of this decision.

``Everyone knows that that marginal mines will come under pressure if the gold price continues to drop and this is the first one to go,'' said one dealer.

The gold price has suffered another bout of selling over recent days, dropping to fresh twelve year lows around $318 an ounce.

The news has badly hit local gold shares and the all gold index earlier shed 3.13 percent, or 29.8 points, to 922.3 -- its lowest level since February, 1993.

To:Mark Kubisz who wrote (262)
From: John Barendrecht Monday, Jul 7, 1997 9:41 AM
Respond to of 80032

S.Africa gold index loses more than 3 pct
JOHANNESBURG, July 7 (Reuter) - South Africa's all gold index shed 3.07 percent, or 29.2 points, to stand at 922.9 by 1031 GMT on Monday as the bullion price continued its recent slide.

The slip dragged the index to its lowest level since February, 1993.

The price of the yellow metal was last at new twelve year lows around $317.85 an ounce as the latest bout of selling, sparked by the announcement of Australian reserve sales, still grips the market.

Many analysts see little upside and are predicting the price will tumble further and may test $310.

As the gold price tumbles South Africa's marginal mines are coming under increasing pressure and earlier on Monday Randgold and Exploration Co Ltd's (RNGJN.J)East Rand Proprietary Mines Ltd (ERPM) said it had decided to cease operations at its Benoni Gold Mining Co Ltd as soon as possible due to the ailing gold price.

Randgold was down at a new year low of 17.50 rand after dropping 245 cents.


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