| GLAMIS GOLD (GLG-NYSE)
Glamis Gold has recently completed a major acquisition which will position the Company to triple production from an estimated 110,000 ounces during 1998 to about 330,000 ounces in 2001. Cash cost of production should decline from the current $202 per ounce to about $180 in 2001. The Company's gold reserves, conservatively estimated to be 4 million ounces*, are selling for about $17.50 per ounce net of its cash position. We believe the acquisition is very timely given the depressed nature of the gold market. It is particularly encouraging that Glamis has been able to maintain positive cash flow during 1998 under extremely depressed gold prices. Obviously, any substantial increase in gold prices will translate into much higher earnings over the next two years. Based on the Company's internal fundamentals, including large reserves, low cost and rapidly increasing production, we see the potential for a doubling in stock price even in a flat gold price environment. A pristine balance sheet featuring $40 million in cash and no debt further reduces downside risk. In our mind, the situation presents the best of both worlds; with relatively low risk, the potential for significant appreciation in a flat gold price environment and the possibility of big gains if gold rises from the current extremely depressed levels. Gold also represents a hedge against inflation, market turmoil and Y2K problems. *Reserves would expand substantially with gold prices
higher. Today's depressed
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