Rubin remains at center of market manipulation

Section:

Homestake Mining's Thompson
on Gold Prices and Stock

By Claudia Carpenter

Denver, Oct. 4 (Bloomberg) -- Here is comment by Jack
Thompson, chief executive of Homestake Mining Co., the
seventh-largest gold mining company, on the company's
stock and gold prices. The comments were made during a
gold investment conference in Denver. Shares of Walnut
Creek, Calif.-based Homestake fell today to their
lowest price since 1982.

"I say to current investors: Be patient. This is a new
company and we are prepared to make money no matter
what the gold price does. To potential investors, I
say: This is a new company, with a solid balance sheet,
and a low cost of production.

"We believe in gold. We believe gold will rise again,
and when that time comes, this company will be
prepared. If it doesn't, this company will also survive
and thrive even in a difficult environment."

Why gold prices are weak:

"Central banks that are not part of the European
central bank agreement last year have added liquidity
into the market. Uruguay and some other countries
outside of Europe have been selling their gold into the
market. And so it's been depressing gold prices. I have
seen estimates that there is something like 1,000 tons
of gold in central banks outside of Europe.

"I am not going to make a prediction about gold because
I've been disappointed too many time. I've been humbled."