Favor Junior Explorers with Solid Cash Position

JOHN WILSON, Resource Capital Research
"At the junior end of the market, given the current equity market turmoil, we currently favor companies with a solid cash position, near term exploration news flow and project development milestones; and in producers we favor companies with rising production profile from projects where cost pressures are contained.

Stronger currencies in traditional producer countries are maintaining cost pressure on gold producers. Further weakening of the US dollar may occur given the deteriorating outlook for the US economy, trade balance deficit, ongoing problems with the subprime credit market and dramatic interest rate cuts where the Federal Funds rate is now at 3%." (2/14/08)

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