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Nov 2001 - Pasminco (PAS)

“It’s time to leave the Forex Gambling Game Alone”

The eventual suspension of Pasminco (PAS) on 19 September 2001, and blow-out in liabilities to A$3.4bn as some of the forex was closed out by the banks on 26 September has to be the final warning for resource companies to leave the forex or currency speculation “game” alone. All too often we have seen resource companies appear to think that trading currency is the same as trading commodities. It isn’t, it’s vastly different and generally with no observed correlation whatsoever !

Dec 2001 - Where’s Gold Bar?

“Where’s the Gold Bar ?” (…or silver or platinum bar, copper or nickel cathode etc)

There must be many companies who have heard this question asked of them, and it simply comes down to the stockmarket wanting the share price of the exploration stock to appreciate, and one of the best ways is for a company to produce its first gold bar. (The market ultimately tires of the drilling results, and eventually views them as the company trying to spruik the share price of the stock even if the drillholes are genuine).