Mr. Parratt has over 29 years of diverse exploration experience including all facets of precious metals exploration from reconnaissance to intensive development. He has Managed the discovery and development of the Rabbit Creek, Lone Tree and Trenton Canyon gold deposits and participated, via joint venture, in the discovery and development of the Marigold, North Peak, Cipoeira and Gold Hill gold deposits as well as the Trinity silver deposit. He has also managed the development of resource to reserve at the Twin Creeks, Mule Canyon, Valmy and Mesquite gold deposits. Cumulatively, these activities resulted in the creation of over 15 mm ounces of gold reserves within a 12-year period and North America's fifth largest gold mining company, which produced over 850,000 oz of gold during 1996.
Additionally, Mr. Parratt managed the consolidation of Gold Fields Mining Corp's US exploration staff with Santa Fe's US exploration staff after completion of the Hansen PLC/Santa Fe Asset Exchange in 1993. He was also a member of the Executive Due Diligence team that evaluated the Homestake Mining Co. and Newmont Gold Co. offers to acquire Santa Fe via merger in late 1996 and early 1997.
Mr. Parratt, with gold remaining steady above the $700/oz price what are your thoughts on gold and gold stocks moving forward?
I expect the price of gold to rise higher and to exceed the peak price reached in 1980. When this will occur is difficult to say but I think within the next 12 months -maybe the next 6 months. Gold stocks should appreciate as well.
I was wondering if you could please summarize in a few sentences, your views on the effects that rapid capital cost escalations and the rising Canadian Dollar are having on earnings and profits of gold producing companies.
Costs to develop and operate mines are increasing. This means higher costs per ounce for gold and smaller margins than one might think given higher gold prices. This may provide a higher floor price for gold going forward.
If you could only buy and hold 1 gold stock (other than AuEx) for the next 12 months which one would it be and why?
I would pick a low cost, mid-tier producer which stands to have the greatest earnings margin. Not Newmont or Barrick but maybe Goldcorp or Meridian?
Lastly, if possible can you please highlight one sector among resource stocks (eg. it can aluminum stocks, nickel stocks, steel, gold, silver etc.) that you believe to be overbought and due for a correction and one sector that you believe to be oversold and due for a bounce and why.
I think maybe copper/molybdenum stocks maybe overbought. Significant new production is likely for these metals. I think gold stocks are oversold. There are no new large gold mines coming on-stream shortly.
Thank you Mr. Parratt!
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