9:15p EDT Wednesday, November 15, 2000 Dear Friend of GATA and Gold: A friend of ours, Dale Schnitzler, has written a wonderfully supportive letter to Newmont Mining. I'm attaching it here in the hope that other Newmont shareholders might send similar letters to the company and that shareholders of other gold mining companies might send similar letters to those companies. One more point .... This week GATA received a generous contribution via a wire transfer from a bank in Amsterdam, but the notice we received from our bank did not identify the donor. I'd be grateful if he could contact me so I may acknowledge his generosity formally. CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. * * * An Open Letter to Newmont Mining By Dale Schnitzler As a former larger shareholder and backer of Newmont Mining I would like some answers from you as to the reasons for the excessive destruction of shareholder value at Newmont while on your watch. That is, over the last 5 years Newmont's stock price has gone from around $60.00 a share to a little more than $13.00 on the NYSE close today -- a destruction of wealth of almost 80 percent. Now as a seasoned investor of some 25 years, I have seen many a bear and bull markets, and have owned other companies before that have declined even more than 80%. However, I have NEVER owned companies in an industry such as yours where the CEO's and management teams are so totally complacent after such a long fall. Further, from all outward public appearances, Newmont's management team seems to not only be satisfied with the company's stock performance, but it appears take exception to shareholders who are critical of the company and those same shareholders who have questions about the shenanigans which are occurring daily in the gold market. As I said earlier, having followed financial markets for more than 25 years, it is CRYSTAL CLEAR to anyone who is watching that all is not right in the gold market. Hundreds of thousands of investors and market participants either believe or know the gold market is being manipulated, yet the management's at the major mining companies remained conspicuously silent. My questions to you below are designed to ascertain whether you are aware of the ongoing manipulation in the gold market, and if you are, whether your management team is part of that manipulation. The questions I am seeking your answers to are as follow, and I would appreciate specific answers to these questions: 1. Have you read the Gold Derivative Banking Crisis report that GATA personally presented to the speaker of the House, Denny Hastert? It can be located at www.GATA.org. A copy was sent to Newmont by GATA Chairman Bill Murphy. If you didn't read it, why haven't you? If you did read it and you did not agree with the VOLUMINOUS amount our evidence that the gold market is manipulated, please list what you find is wrong in that document. Specifics please. 2. How do you account for the buildup of gold derivatives on the books of J.P. Morgan, Chase, and Deutsche Bank -- banks that GATA has cited as part of the gold cabal for two years? The derivatives at other banks like UBS Warburg have not gone up at all. Please explain your interpretation of this massive explosion derivative positions. 3. How do you explain the price of gold rising $84 after the Washington Agreement only to come all the way down again to the same price, all while there is a huge natural gold supply/demand deficit? My own sources put the supply deficit at 1,500 tonnes annually. Where is the gold coming from? Please be specific as to your beliefs of where all this gold is coming from to support this deficit. 4. How do you account for the gold price going down when many hedgers are delivering into their hedges and reducing gold supply that would have been supplied to the market? It was recently announced that the big Australian hedger Sons of Gwalia has delivered into their forward sales all year (contrary to what the market had been thinking). Please be specific. 5. How does Newmont account for the fact that gold always goes down on days when it should go up -- like today for example, in the midst of a collapsing NASDAQ and a presidential political crisis? That has been the case for years. Every single time. How do you account for the fact that gold has not been allowed to rally decently for two days in a row for the past seven months? Not one time. Free markets do NOT trade this way. Even when the Dow was around 800 back in 1982, and in a nasty bear market, it NEVER went seven months without some sort of decent rally. Please explain your belief as to why gold sells higher overnight the last three months, only to get slammed every morning in New York on the opening. And to add insult to injury, the better the news for gold the harder it gets slammed. Why is this? 6. Lastly, why do you offer financial and moral support to anti-gold people and organizations such as Jessica Cross at the World Gold Council, yet ignore organizations like GATA, which has tried to help the mining industry and its shareholders? Why has Newmont not invited GATA to Colorado to present its findings and discuss them? If you believe GATA is wrong and does not deserve the financial and moral support of Newmont, please explain why, and be specific. Thank you for your attention and your anticipated answers to my questions. Although I hold only a few shares of Newmont -- fewer than 1,500 -- I hope to take a substantial position in Newmont someday. However, it may have to wait until Newmont either gets a management team that has an understanding of the industry, or a management that isn't involved in manipulating the price of gold lower for its own ends. Clearly, your management's behavior regarding the gold market is a true enigma. I look forward to written responses to my questions. -END- -------------------------- eGroups Sponsor -------------------------~-~> <FONT COLOR="#000099">eGroups eLerts It's Easy. It's Fun. Best of All, it's Free! </FONT><A HREF="http://click.egroups.com/1/9698/1/_/126/_/974341834/"><B>Click Here!</B></A> ---------------------------------------------------------------------_->
