Mine site visits help gold analysts see beyond the annual report

When discussing stock market investments, a company's performance is important. But so is the financial community's perception of that performance. To be sure, a good product or service, coupled with sound manage¬ment, remains important but is no longer enough. How stock analysts view a company's performance has become equally important. A major task of a mining company's investor relations officer, then, is to build and maintain a positive perception of the company to mining analysts throughout the world. That's a tough assignment in any market. The subject here, though, is gold. And, with its weakened price, gold companies must work harder to convince analysts their company is still a good investment. The analyst, on the other hand, must see through the corporate hype and decide whether it's worth recommending to clients as an investment. No simple task, either. Annual reports, 10-K forms, and quarterly reports only tell part of the mining company's story. Site visits, complete with discussions (sometimes interrogations) with a mine's principals, oftentimes tell an analyst more about a company's investment potential than the annual or quarterly report. So it was that three of the nation's major gold companies arranged a three-day tour of their gold operations in Nevada for a group of 22 analysts and a pair of mining industry scribes. The analysts represented investment houses the US, Canada, and England. The host companies and mines visited included FMC Gold's Paradise Peak mine, Amax Gold's Sleeper and Wind Mountain mines, and Battle Mountain Gold's Surprise and Fortitude mines.