Thorunn Howatt
Northern News Services

Yellowknife (Feb 13/02) - The recent rise in gold prices is good news for those invested in gold company stocks and it's good for Yellowknife's Con and Giant mines too.

Last week the price of gold jumped above a midday price of US$300 - a level not seen since February 2000.

"This run-up we had is very welcome," said Miramar Mining Corporation president and chief executive officer Anthony Walsh. "We have been in a depressed gold market from the operational side of things. As a gold producer the higher the gold price, the better it is for us."

Miramar paid about $256 US to produce an ounce of gold last year. The lifespan of Con and Giant mines are running out -- Miramar is projecting less than five years. So higher gold prices could mean a bit longer mine life and jobs in Yellowknife. Higher profit could also mean more money for exploring Miramar's other projects like the Hope Bay project located close to Bathurst Inlet.

Miramar's shares, like other gold companies, have had a good run during the heightened interest in the metal. "Year to date we are up about 73 per cent," said Walsh.

Miramar's shares trade on the Toronto Stock Exchange (MAE).

Part of the reason gold has been surging is supply and demand, said David Dempsey of RBC Dominion Securities.

"A major reason for this past week's run is that a couple of the largest producers who have historically hedged quite a bit have not indicated to this point that they are going to hedge."

When gold producers lock in the future price of their product, it is called hedging. If large companies aren't hedging then investors might think they expect gold prices to rise even more.

Some analysts also think that energy giant, Enron's recent financial troubles caused investors to look for a safer haven and turned to gold.

Many people who are interested in gold pass over the actual commodity and turn to shares in gold-producing companies. But if the average investor wants to get into the gold game it could be too late.

"The time to be buying gold stocks was probably in the summer or in the fall," said Dempsey, who cautioned that this could be gold's top end.