phic reach. In 1995, for example, a Washington-based company purchased a Canadian gold property from a Canadian company in which it held a 27 percent share. Such intertwined organizational arrangements are common in the global gold industry.
In mid-1997, Gencor Limited, a South African company announced that it would not sell a package of its gold interests to Eldorado Gold of Canada, a company in which Gencor holds 40 percent. The reason for the failure of the sale to be completed is that between the agreement and the time the sale was to take place, gold fell in price from $341 an ounce to $322 an ounce; extraction costs in South Africa typically hover at approximately $300 per ounce. Both
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