DRD Gold Takes Nose Dive

DRD Gold (DROOD) has traded as low as $6.00 today. That is equivalent to about $0.75 in the old DROOY. This seems to be a good price. Will it go lower? Possibly, as the threatened strike materializes. The following article from www.MineWeb.com is the latest on the strike:

"DECLARED DISPUTE

Gold workers set to strike

Major mine worker union NUM is seeking a short cut to industrial action at gold mines in South Africa.

Author: Tessa Kruger
Posted: Thursday , 02 Aug 2007

JOHANNESBURG -

South Africa's National Union of Mineworkers (NUM) are threatening strike action in the local gold sector as they couldn't reach an agreement with major gold companies in the final round of negotiations.

NUM spokesperson Lesiba Seshoka told Mineweb today the union was looking for short cuts to declare strike action at gold mines. This is despite the fact that it declared a dispute with the gold sector at the Commission for Conciliation Mediation and Arbitration (CCMA) yesterday and has to follow the official mediation process.

"If there are any short cuts to strike action we will take it. We believe that gold employers are taking us for granted as they have only raised their wage offer to 7,75%."

Seshoka said the union was standing by its demand for a 15% wage increase for gold mine workers as transformation in this industry has lagged behind other sectors.

Underground workers in the gold sector currently earned an average of R2 850 (US$400) per month.

The SA Chamber of Mines and the unions have come to some agreement that mine workers should earn a minimum of R3 000 (US$421) during discussions, but has not made it formal, said Seshoka.

He said the union was eager to embark on a strike as gold employers said they would make a substantial better offer after the unions first declared a dispute. But then the sector only came up with an offer of 6% that was raised to 7,75% during the various rounds of negotiations.

"We believe that the gold sector has stayed behind, considering working conditions and payment.

"It appears that we first have to wage war and suffer casualties - that gold companies first have to loose profits before they understand our demands."

According to NUM there are 140 000 employees in the South African gold sector of which 80% is represented by this union. The majority of its members are underground and surface workers."

Regardless of the strike, I am trying to buy DROOD at $6.00 today.

Gold is trading higher at 669.70 as this is written. It is a bit early to predict the outcomes for the day, but we see the DJI off 80+ at 13382. This is Friday, a day which is the last for the week. It is a time when traders buy or sell to have safety over the week end. It is a very interesting trading day and the market will tell us what the traders are thinking as the day unfolds.

Flash! I just bought DROOD @ $6. Now watch it go lower. That is generally what happens when I buy.

Do not neglect corporate worship on the Lord's Day as is the practice of some. This is an important part of the Christian life. We are to meet together for worship of the Living Sovereign God of all.

Best to each, Doug