By Bob Chapman The International Forecaster (posted at www.LeMetropoleCafe.com) March 3, 2001 One of our operatives in South Africa acquired the following communication at great risk, and the contents were so explosive he felt he had to pass it on to us for publication. As most of you know, I lived in southern Africa for three years and have never let our line there fall into disuse. We think AngloGold could well be complicitous in the gold price-fixing scandal. The presence of a director of J.P. Morgan on the board of AngloGold adds to the seriousness of the allegation. Now that the following letter has been published worldwide, we hope it will bring to an end AngloGold's efforts to take over Gold Fields, at least until it is determined whether there is a conspiracy. The following communication speaks for itself. It would be even better if AngloGold CEO Bobby Godsell would do the right thing and voluntarily announce that under present circumstances any interest AngloGold might have in Gold Fields would not be pursued until the situation is clarified. That way the company could assist in discovery, which would be in the best interest of all of us. * * * To Mr. K. H. Williams, Marketing Director, AngloGold: I have followed the GATA/Howe lawsuit very carefully for some time. Through nominees and associates we hold a very large number of Gold Fields shares. It is clear, even to a layman, that it is in the interest of AngloGold to effect takeovers (that this has happened and is still happening is a fact) of gold producers at a low gold price (effectively depressing the market value of any such producer that is in the sight of an AngloGold takeover). The proof in the GATA conspiracy issue is that AngloGold is snapping up gold producers suffering under a manipulated gold price and effecting takeovers at depressed market values. The GATA conspiracy issue is not circumstantial. AngloGold's takeover bid for Gold Fields prior to the discovery process in the GATA/Howe lawsuit, when an imminent rise in the gold price is in the cards and will put Gold Fields beyond the reach of AngloGold, is incontrovertible fact. The conspirators and the beneficiaries of a manipulated gold price are acting unlawfully, more specifically when they continue to do so while these very serious allegations are being investigated. You need not be told that the matter is very serious. If the conspiracy is merely based on circumstantial evidence as you are alleging, why do you not actively support the discovery process to get to the bottom of these conspiracy allegations and discontinue takeover bids under circumstances created by the conspirators and manipulators of the gold price? Surely AngloGold would have no objection to delaying its takeover bid of Gold Fields until the GATA/Howe discovery process has been completed and evidence emerging from this discovery process has been evaluated. The result of the discovery process will have a positive effect on the gold price. This result will not be in the best interest of AngloGold. But it is requested that AngloGold delay its takeover bid for Gold Fields until at least after the GATA/Howe discovery process and the evaluation of the evidence flowing therefrom. This discovery process will answer very important questions in respect of the conspiracy issue around the manipulation of the gold price. (Since your own views are that the evidence of a gold price manipulation is circumstantial, wait for the process to be completed.) If AngloGold makes a bid for Gold Fields and benefits from an unlawful gold manipulation process, AngloGold would be acting illegally to the prejudice of others. Any attempt by AngloGold at this stage to proceed with its takeover bid for Gold Fields would be irregular and is objected to. Your e-mail forwared to Chris Powell of GATA has a sinister objective that is patently transparent. AngloGold has benefitted and still is benefitting from a manipulated gold price, enabling it to move on Gold Fields. J.P. Morgan is no stranger to AngloGold. This statement will further be elaborated on in due course in the appropriate forum, if necessary. AngloGold is hereby informed that should it proceed with the takeover bid for Gold Fields at this stage (prior to the GATA/Howe discovery process and the evaluation of the evidence flowing therefrom) and when the gold price is manipulated for the undoubted benefit of AngloGold, legal proceedings will be instituted against it to block any takeover bid for Gold Fields, alternatively for legal proceedings to recover all damages from AngloGold and its directors in respect of an AngloGold takeover of Gold Fields at a deflated price. AngloGold will have the opportunity to answer questions under oath in a South African or international court through which legal proceedings will be instituted. That AngloGold is urgently pursuing its takeover bid of Gold Fields at this stage (low gold price and low share price) and before the discovery process in the GATA/Howe lawsuit makes nonsense of your assertion that there is only circumstantial evidence of conspiracy. The answer to your allegation is obvious. Why doesn't AngloGold wait for the discovery process and evaluate the evidence that will flow therefrom? Should any evidence from the GATA/Howe lawsuit confirm a conspiracy and manipulation of the gold price and that may directly or indirectly be linked to the benefit of AngloGold, the rights of all relevant and affected shareholders of Gold Fields (covered by this communication) are expressly reserved to institute the necessary and appropriate legal proceedings against AngloGold and its directors and agents should AngloGold proceed with the takeover bid of Gold Fields at this stage and under the circumstances as herein set out. We fully support GATA and Mr. Howe in their lawsuit. Mr. Williams is on record that AngloGold benefits from a low gold price, which comments and activities support the allegations made against AngloGold in respect of the manipulated gold price. Since AngloGold is aware of the allegation of a conspiracy affecting the gold price (GATA/Howe lawsuit), any business activities conducted by it under such circumstances, specifically where it benefits the therefrom, would result in AngloGold's acting unlawfully, being part of an unlawful conspiracy to manipulate the gold price. J. van Zyl Swissbourgh Group P.O. Box 1313 Bedfordview 2008 South Africa Tel: 011 450-2433 Fax: 011 450-1545 E-mail: [EMAIL PROTECTED] * * * Significantly, the unlisted Japanse investment fund Jipanqu Inc. is to acquire a 21 percent interest in Harmony Gold, South Africa's third-biggest gold producer. Eight percent will be bought by the end of April and the remainder later. On February 2 gold short positions were at a five-year high of 66,731 contracts. Funds had been selling relentlessly since the beginning of January, believing the 20-year low of $252 an ounce would be broken. At the same time gold lease rates for periods of six months and less have climbed from less than 0.5 percent to 4.68 percent, reflecting a shortage of gold available for leasing. Banks are not replacing short-term lease loans with longer-term loans, which forced those who borrowed gold and sold it to repurchase that gold rather than rolling those short positions forward. If lease rates could be sustained at current levels for at least 10 days, that would support enough covering of shorts by funds to lift the April price to $275 an ounce, preparing the way for a rally that might compare with the one seen in October 1999, when prices spiked to a high of $340 an ounce. There obviously are merger discussions going on between AngloGold and Gold Fields, and supposedly a $5.50 bid is on the table, which is a 30 percent premium over the current price. We see no reason for Gold Fields to be taken over with a rising gold price and an unhedged position. If we were Gold Fields shareholders, we wouldn't be happy with a paltry 30 percent premium. The gold price in Australian dollars is 512 just below the high of 522. The hedge books of Aussie producers will shortly be in trouble. Higher gold prices will put some of these highly leveraged companies out of business. Our spies tell us that early on Wednesday, February 28, the Bank for International Settlements (BIS) lent gold bullion to a group of bullion banks to allow them to depress gold prices and drive leasing rates back down. This is typical of the market manipulation that has been ongoing since at least 1994 and probably since 1986. Central banks are not rolling over their two-year leases, and short covering is going on and being aided illegally by the BIS. All they are doing is bailing out the bullion banks. In addition, with lease rates at 4-5 percent, the cost of holding short positions is much more expensive. The Australian miners are hedged to the hilt, and a move to $290 an ounce gold would put them and the market in a terrible bind. The production shortfall will get worse in the months and years ahead. If the total short position is, as we have stated for the last year, 15,000 to 29,000 tons, any production stoppage could cause chaos on the upside. No matter what, five years from now gold will be selling at what we consider today astronomical levels. No matter what the forces of evil do, they will not win. We are in for a long wild ride as gold seeks ever-higher levels. We estimate that 2001 earnings for Meridian gold will be a disappointment. Reserves are of the short-life variety. We'd switch to another gold stock ahead of the pack if you own it. You could try Agnico-Eagle (AEM-NYSE). Crystallex (KRY-ASE), and Kinross (K-TSE). By the way, be very careful in reading research reports and gold and silver stock recommendations. Most of the writers don't have a clue as to what they are writing about. There is something big brewing behind the scenes regarding the central banks and gold. Gold lent to Turkey cannot be recovered because climbing interest rates and the devalued lira have crippled borrowers who depend on a stable gold conversion rate. Lenders' exposure has increased exponentially after they were unable to secure alternative short-term supplies. The Bank of England refuses to confirm that it is overexposed to bullion banks and hedge funds connected with Turkey. Rumor has it they don't have the physical gold to meet future reserve requirements to have their final March sale. -END- Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
