Bema Gold floated on AIM today...

Looks to be a good company with good results released in August. A rising gold price can only benefit this company.. $400 by end of year?? IMHO.. Please DYOR.


Bema Gold Corporation
30 September 2003

30 September 2003


Bema Gold Corporation lists on the Alternative Investment Market
of the London Stock Exchange
and becomes AIM's second largest company


Bema Gold Corporation ('the Company'), the Toronto Stock Exchange (TSE) and
American Stock Exchange (AMEX) listed Canadian mining company, announced today
that its common shares have been approved for trading on the Alternative
Investment Market (AIM). The Company's shares commenced trading today on AIM
with an opening price of 156.5p under the symbol 'BAU'. Canaccord Capital
(Europe) Limited is acting as the nominated adviser and broker to the Company.


Bema Gold is an intermediate gold producer with operating mines and development
projects in Russia, South Africa, Chile and Canada. Over the last decade Bema
has demonstrated an exceptional exploration track record and the ability to
develop its assets from the exploration phase to production. The Company's
growth strategy is to increase gold production to over 1 million ounces annually
through the advancement of existing development projects and to acquire other
exploration and development opportunities globally. Bema has a strong cash
position and enjoys exceptional leverage to increasing gold prices and excellent
liquidity.


Clive Johnson, Chief Executive Officer of Bema Gold, comments: 'Listing on AIM
is an integral part of our European Development Strategy. While Bema has
benefited from a strong European shareholder base for many years, the AIM
listing will give us better exposure to European investors. Being an
international gold producer, we look forward to being part of the UK market that
is historically renowned for financing mining projects around the world.'


Bema operates the Julietta Mine in Russia and the Petrex Mines in South Africa
and is a 50% owner of the Refugio Mine, Chile (currently on care and
maintenance). In 2003 projected production is 270,000 ounces of gold from
Julietta and Petrex. Bema is expecting to complete a ramp up at Petrex by the
fourth quarter of 2003, bringing the Company's annualized rate of production to
over 300,000 ounces of gold. Furthermore, plans are underway to recommence
production at the Refugio Mine in 2004, increasing projected annual production
to approximately 400,000 ounces of gold.


The operation of the Julietta mine has given Bema valuable experience and a
strong profile in Russia. Bema is recognised as one of the few Western
companies to have brought international financing to a Russian project and built
a successful mine working with local partners.


Bema has been able to leverage its success with precious metals projects in
Russia and, in late 2002, entered into an agreement with the government of the
Chukotka province in North East Russia to acquire up to a 75% interest in the
high grade Kupol property.


An extensive exploration drilling program has been carried out by Bema in 2003,
confirming that the Kupol property hosts a high grade world class gold and
silver deposit. Based on the results to date, Bema intends to fast track the
exploration and development of the Kupol Project.


Ends


For further information, please contact:

Clive Johnson (CEO)
Bema Gold Corporation
Tel: 001 604 306 7003


Jerry Korpan (Non Executive Director)
Bema Gold Corporation
Tel: 07768 415 361


Neil Johnson
Canaccord Capital (Europe) Limited
Tel: 020 7518 7372


Simon Robinson / Justine Howarth
Parkgreen Communications Ltd
Tel: 020 7287 5544

Watch this one in the morning it could get off to a flyer. A real hot stock at the moment.

gf.

gf - If the price of gold goes up then that means it's bad news for us punters in shares other than mining companies like Bema as overall market confidence would dwindling.

Reports from the US are predicting a bull run on the S&P up to the end of the year - so won't gold prices fall ?

These gems were up over 12% in after hours trading in the US. They should open up over 200p in the morning fingers crossed.

cheers gf.

Bema up to 204p, this whole sector looks very bullish indeed. Just taken out a speculative punt on Thistle mining TMG, it has been up over 30p this year and at its price now could turn out to be a good short term gamble.

cheers GF.

And its further up now gold is the place to be at the moment.

cheers GF.

Another one thats way up. Its about time we had a seperate Gold thread set up.

Come on small Women.

cheers GF.

A cracker of a day yesterday and finished decently on the US market. Could move north very quickly.

cheers GF.

Well POG has held up well and fingers crossed we should be in for a good day in the morning.

cheers gf.

Minews Story



Date : October 21, 2003



Kupol Gold Project In Chukotka Is Key To The Future Of Bema Gold.


Bema Gold, a mid-tier gold producer in Canada came quietly onto AIM a couple of weeks ago. Quietly, apart from a shindig at Claridges to announce that the secondary listing had been achieved by way of introduction. No money was raised as it is well funded, but this has meant that the amount of information available to UK investors was limited. It also meant that liquidity in London was comparatively small, though the company trades huge amounts of shares daily in Toronto. The object of the listing was not money, but to raise the profile of Bema among European investors according to Clive Johnson, Bema’s chief executive.

As a first step Tim Hoare, the redoubtable boss of its London brokers Canaccord , suggested to Mr Johnson that a presentation be given at the next Minesite Mining Forum in November. An invitation had, in fact, been sent to him a couple of weeks earlier, but no answer had been received. He seemed in favour and at his suggestion another letter was sent, but with the same result. In the meantime Minews had, on advice, adopted a fall-back position in case Mr Johnson could not make it. Contact had been made with Bema’s man, or rather men, in London, so that if necessary one of them should step into the breach. Bema, after all, is establishing an office in South Kensington from which its UK/European PR/IR campaign can be operated.

Memories went back to when Henry Clive did a similar job for John Jones of Troy Resources at the 11th Minesite Mining Forum in June. Henry used to be a stockbroker and it is to his credit that Troy now has over 30 per cent of its equity in UK hands without bothering with an AIM listing. Whisper it quietly, lest it get to Australia, but he did a job as good as, if not better , than his boss. Unfortunately things did not go so smoothly with Bema. Mr Johnson, according to his London team, has to attend to family matters in November so cannot make the next Forum. He does not want either of his two representatives to take his place , so the next time it may be possible for him to appear is February.

Mr Johnson is a good promoter. No doubt about that, and a string of fundings has been completed to prove it. At Claridges he managed to give a very upbeat talk without once mentioning the Petrex acquisition in South Africa which cost his company C$67 million about a year ago. For this it purchased the Golden Reefs mines on the Witwatersrand as well as eight production shafts and a mill which produced 146,000 ounces of gold in the year to end June 2002 at a cash cost of US$194/ounce according to Canadian stockbrokers Loewen, Ondaatje, McCutcheon. Based on an independently audited 10 year mine plan, the mine is projected to produce an average of 185,000 ounces of gold per year with operating cash costs estimated at approximately US$185 per ounce. With some expansion here and there, plus mining slightly higher grade material , it is now expected to be producing at a rate of 200,000 ounces/annum by the end of this year.

Then was then and now is now and there seems little doubt that the strength of the rand in the intervening period has injected a bit of pain into the proceedings, currency put options notwithstanding.. Nevertheless the additional production means that Bema has been able to forecast 300,000 ozs for next year from South Africa and the Julietta gold mine in Russia at an average price of US$200/oz. In addition to this there is the Refugio mine in Chile which is jointly owned with Kinross. This may be restarted towards the end of 2004 and it would add a further 115,000 ounces to Bema’s annual production, but at a high cost. The same goes for the Cerro Casale deposit in Chile where Bema has a 24 per cent interest. If Placer Dome decides to go ahead with it, more high cost ounces will be added to Bema’s production portfolio.

This is the crux of the matter. Bema has to decide if it wants to be a high cost, or a low cost producer which is where the Kupol gold project comes into play. A 75 per cent interest was acquired shortly after the South African deal and it is up in Chukotka near Julietta. Kupol hosts a large epithermal gold and silver vein system that is up to 30 metres wide with significant values over a true width of up to 15 metres and Canaccord believes that it has all the earmarks of a world class deposit. The latest drilling results confirmed the continuing high grade gold mineralization over 3.1 kilometres of drilled strike length and to a depth of at least 300 metres. Grades as high as 35.56 g/t gold and 865.51 g/t silver over 9.6 metres were encountered.

Opinion is hardening that this may be a 10 million ounce deposit. More will be known in January when an initial resource estimate is published. It would then be possible to move to pre-feasibility in short order and on to a bankable feasibility study within 12 months. Obviously it will be a low cost open pit operation and Clive Johnson has said that that it could be in production by 2007 at a rate of between 700,000 and 1 million ozs of gold a year. This would mean mining around 900,000 tonnes/annum of the high grade ore in the North Zone and Big Bend regions and the capital cost of developing the mine would be around US$200 million. The amazing thing is that net of silver credits the gold would be produced at a cost of virtually zero. It is difficult to find a simpler and better story than that, so more is the pity that Mr Johnson chose not to let his London team explain it to the Minesite audience. It would have also given them a chance to introduce themselves.ENDS.

Looks like a very exciting play on Gold to me and Im going to add whenever funds become available.

gf.

Nov 17 - info just given today - Director sales + shares granted to Directors as
a result of the exercise.rgds aj

Share transaction

Down day so far for this one ajren. Think the strength of the dollar is taking its effect on most gold shares.

cheers GF.

NEWS

Director sale

45,000 @ 5.30 aj

Hi

Is there a GOLD thread open, or is this it?

I invested in Golden Prospect (epic GOL) (at 21p) because their business is to buy shares in other Gold companies, so the overall risk is greatly reduced if one company's share price drops.

Take a look at their portfolio : http://www.goldenprospectplc.com/strategic

Also, take a look at the recent news about them : http://www.moneyam.com/action/quote/showQuote?epic=GOL

www.t1ps.com tipped GOL at 5p (they're now 31.50) and they still believe the total value of GOL's share portfolio is NOT reflected in the current share price.

I'd appreciate any comments/thoughts/additional info that I've not been privy to?

cheers

P

PW Evil K has a price target of 40p on it and that not including its unlisted asetts. He argues the higher POG goes the more the NAV increases.

Bema bombing along this afternoon already up 4p.

cheers GF.

Hi pthwaite,
You are right i.e.there is a GOLD thread which I opened for general discussion
- not specific shares - about gold e.g.What effect terrorism will have on
gold.............etc.gf has a thread on gold prices which I update daily-
sometimes twice daily.I feel my GOLD thread is very useful for everyone
interested in gold companies because it gives an overall view of the
world situation i.e.it is a vital part of each gold companies outlook.
Obviously,you can also open a thread on a specific gold share you are interested
in.Posters might think everything is very confusing.However,it is not.

gf thread covers gold prices

ajren-me -covers the top/latest stories on GOLD

gf covers most of the specific threads e.g yamana

rgds aj

Bema up in the US but down here. They will allign the share in the morning.

cheers GF.

Hi gf.Why is it up/down ? rgds aj

Up 2p again. Dont forget the price is brought into line with the price in the US, so even no trades showing the price moves up or down according to how it had done in the US.

cheers GF.

Getting a fair old tonking this afternoon as POG drops. Analysts are saying though over in the US they expect a big surge on POG very soon to new highs. So as this one follows POG very closely Im not worrying. No problems. Cool calm and collected I think. Will just pop for a quick pint or two to steady the old nerves.

cheers GF.

Hi gf.cbsmarketwatch said a bit about it today rgds aj

Ended up on the day by 3p.

GF.

NEWS
Edwin Gols - Director sold 50,000 shares @ 5.31 dollars.rgds aj

Some excelent news through late today....................

Bema Gold Corporation
08 December 2003


News Release

Bema and Kinross Plan to Recommence Gold Mining at Refugio

Vancouver, British Columbia, December 4, 2003... Bema Gold Corporation (TSX,
AMEX-BGO, AIM-BAU) ('Bema') and Kinross Gold Corporation (TSX-K; NYSE-KGC)
('Kinross') are pleased to announce that their respective boards of directors
have approved the recommencement of gold operations at the Refugio heap leach
mine located near Copiapo, Chile.

Compania Minera Maricunga ('CMM') owns the Refugio mine and is owned 50% by Bema
and 50% by Kinross. The Refugio mine had been placed on care and maintenance in
May 2001 due to low gold prices and has produced declining amounts of gold from
residual leaching of existing heaps since that time. During the past year, a
56,000 metre drill program was successful in expanding reserves to justify a
greater than 25% expansion of daily throughput compared to historic production
levels. Initially the Verde pits are scheduled to produce 40,000 tonnes of ore
per day which will be crushed and placed on the leach pads. Subsequently the new
Pancho pit, expected to be mined at 35,000 tonnes of ore per day, will extend
the mine-life to approximately 10 years at an assumed gold price $350 per ounce.
Life-of-mine annual gold production is expected to range from 230,000 to 260,000
ounces on a 100% basis at total cash costs averaging approximately $225 per
ounce.

Production is expected to recommence late in the fourth quarter of 2004. Initial
capital costs on a 100% basis for the expanded project are estimated at
approximately $71 million to repair and replace critical components of the
existing infrastructure, increase reliability, improve serviceability and
provide a safe and efficient work environment. In addition, a new mining fleet
will be purchased and is anticipated to be financed through a capital lease of
approximately $30 million. Major capital items include plant modifications and
upgrades, a modest pre-stripping program and 110-kilometre power line, connected
to the Chilean grid, which will replace the previous diesel generated power.
Bema is currently evaluating various financing options including project debt
and convertible debentures for its 50% of capital requirements.

The combination of improved gold prices and expanded reserves have resulted in
robust economics for the expanded project. At the base case gold price of $350
per ounce, the proven and probable reserves (100% basis) are estimated at
124,054,000 tonnes at a grade of 0.86 grams of gold per tonne for 3,433,000
ounces of gold. The base case project economics indicate a pre-tax internal rate
of return ('IRR') of almost 22% and a payback of approximately 3.8 years. The
sensitivity analysis of the project economics yields an IRR of approximately 34%
and a payback of 2.6 years at the current gold price of $400 per ounce.

The Qualified Persons under National Mining Instrument 43-101 are W. Hanson,
P.Geo and R. Cooper, P.Eng, both of Kinross. For further information on Bema
please email investor@bemagold.com or visit our web site at www.bema.com. To
speak to a representative of the Company please contact:

Ian MacLean Derek Iwanaka
Manager, Investor Relations Investor Relations
(604) 681-8371 (604) 681-8371 ENDS.

In other words because POG is on the rise the mine is now profitable again.

cheers GF.

looks very good. rgds aj

I forgot to mention my concern - I wrote in Gold Bullion Security thread rgds aj

bema gold is taking a bit of a battering last couple of days. big director selling may be telling us something?

All gold miners in the US have taken a battering over the last two days. SI please see Gold thread.

cheers GF.

See STRONG INTEREST IN GOLD on my Gold Bullion thread rgds aj

Been passed news on tonight that Bema has reported a new big fing of Gold and DIAMONDS. Must be a RNS tomorrow. Price up over 5% in the US.

cheers Gf.

Up again in the US tonight.

cheers GF.

Up in the US and on reasonable volume. Hope it keeps going.

cheers GF.

Finished like a train in the US tonight. This is the one to be on but its a volatile devil.

Should see a mark up here in the morning.

cheers GF.

this ones flying today.

Plenty of upside left in it.

GF.

GF

This has crashed, what are your opinions on a bounceback?

Dont panic, stay in its a volatile share. Its done this before only to recover as high as 241p. Gold stocks could have a nervous 2 weeks the yank analysts say. Just stick in there.

cheers GF.

GF

I haven't got any shares in Bema Gold but I was thinking of buying.

Why did it crash so badly?

Up nearlly 4% this evening at close. Sorry apple it didnt crash, please look at the daily trading.

cheers GF.

Flying this morning on the new survey out on RNS. Just wait while the US and canadian markets open.

cheers GF.

Up another 5.5% in the US at close. Heres a good web cast on the company.

http://www.insinc.com/scotia/20031125/preflight.html


cheers GF.

Year end results, production and revenue figures massively up...........




Bema Gold Corporation: 2003 Fourth Quarter and Year End Results
3/25/2004 4:07:17 PM









VANCOUVER, BRITISH COLUMBIA, Mar 25, 2004 (CCNMatthews via COMTEX) -- Bema Gold Corporation (TSX, AMEX - BGO, AIM - BAU) reports the results from its operations for the fourth quarter and year ended December 31, 2003. All dollar figures are in United States dollars unless otherwise indicated.







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2003 Highlights

- Increased annual production by 113% to over 250,000 ounces of gold

- Increased revenue by 139% to $86.8 million

- Reduced project debt by $19.2 million

- Continued to strengthen balance sheet by raising $58.7 million

- Exceeded production budget and reduced operating costs at Julietta Mine, Russia

- Completed plant expansion at Petrex Mines, South Africa

- Announced plans to recommence gold mining at Refugio Mine, Chile

- Completed successful phase one drill program at Kupol gold and silver property, Russia

Gold Revenue

Gold revenue in 2003 totaled $86.8 million on sales of 245,523 ounces at an average realized price of $354 per ounce. The Julietta Mine accounted for $39.5 million from the sale of 116,066 ounces of gold at an average price of $340 per ounce while $47.3 million was contributed by the Petrex Mines from 129,457 ounces of gold sold at an average price of $366 per ounce. Gold revenue and production increased by 139% and 113%, respectively, in 2003 due to the Company's acquisition of the Petrex Mines in February 2003.

Gold revenue in 2002 totaled $36.3 million on sales of 117,583 ounces at an average realized price of $308 per ounce, of which $33.4 million was contributed by the Julietta Mine from 107,602 ounces sold at an average price at $310 per ounce.

Gold revenue for the fourth quarter was $26.7 million on sales of 69,545 ounces at an average realized price of $384 per ounce. Julietta contributed $11.8 million from the sale of 31,819 ounces at an average price of $372 per ounce and Petrex accounted for $14.9 million from the sale of 37,726 ounces at an average price of $394 per ounce.

Financial Results

Bema's net loss for the year ended December 31, 2003 was $30.6 million or $0.09 per share compared to a loss of $3.3 million or $0.02 per share in 2002. The loss in 2003 was mainly due to the higher operating costs incurred at the Company's Petrex Mines in South Africa (see "Petrex Mines" section) and a non-cash mark-to-market unrealized derivative loss of $7.5 million on all of the Company's outstanding gold option and forward contracts (see "Change in Derivative Reporting" section). Despite the increased net loss for the year, cash flow from operations was $8.1 million in 2003 compared to $10.3 million for the same period last year.

The Company reported a net loss of $21.5 million (0.06 per share) during the fourth quarter of 2003 compared to a net loss of $2.0 million (0.01 per share) in the same period of 2002. The loss for the quarter resulted mainly from an unrealized loss of $13.4 million from a mark to market adjustment of the Company's derivative instruments as the spot price per ounce gold increased from $388 at September 30, 2003 to $416 at the year end.

Operations

Bema's consolidated gold production for the year increased by 113% to 250,315 ounces compared to 2002 production of 117,319 ounces. Operating cash cost and total cash cost were $262 and $279 per ounce of gold produced, respectively. However, the Company realized a cash gain of $4.9 million from the exercise of South African rand denominated gold put options in 2003 and if applied to Bema's total operating cost, this cash gain would result in a reduction of approximately $20 per ounce for a net total cash cost of $259 per ounce.

Julietta Mine, Russia (Bema 79%)

In 2003 Julietta produced 118,145 ounces of gold exceeding budget by approximately 1,800 ounces at an operating cash cost of $111 per ounce (budget $110) and a total cash cost of $148 per ounce (budget $155). In 2002, Julietta produced a total of 108,844 ounces of gold at an operating cash cost of $119 per ounce and a total cash cost of $159 per ounce. Gold production at the Julietta Mine improved by 8.5% or 9,300 ounces and operating cash cost decreased by 7% compared to 2002.

The Julietta Mine produced 30,519 ounces in the fourth quarter at an operating cash cost of $123 per ounce and a total cash cost of $156 per ounce. In the fourth quarter of 2002, Julietta produced a total of 25,079 ounces of gold at an operating cash cost of $129 per ounce and a total cash cost of $177 per ounce. Gold production at the Julietta Mine improved by 22% or 5,440 ounces and operating cash cost decreased by 5% compared to the fourth quarter 2002.

Petrex Mines, South Africa (Bema 100%)

Petrex produced 132,170 ounces of gold from the date of acquisition, February 14th 2003 to December 31st 2003, at a total cash cost of $397 per ounce based on a conversion rate of 7.35 South African rand to one United States dollar (USD). Adjusting for the rand gold put option gains would reduce the total cash cost to $360 per ounce.

Total cash cost was $100 higher than budget mainly due to the strength of the rand in 2003. Bema budgeted 10 rand to 1 USD for the year while the rand averaged 7.35 to 1. Total cash cost was also affected by a delay in the scheduled ramp up of ore production from the open pit operations.

Petrex produced 38,436 ounces of gold during the fourth quarter ending December 31st 2003, at total cash cost of $449 per ounce. Adjusting for the rand gold put option gains would reduce the total cash cost to $395 per ounce.

Bema successfully expanded the mill facilities at Petrex in 2003. Subsequently, the mill has demonstrated the ability to process ore in excess of the budgeted 190,000 tonnes per month. Recoveries have also improved during the fourth quarter, however the grade of open pit ore delivered to the mill has been below expectations and has resulted in higher than forecast cash costs for the year.

Refugio Mine, Chile (Bema 50%)

Bema and joint venture partner Kinross Gold Corporation plan to recommence gold mining operations at the Refugio Mine in late 2004. A 56,000 metre drill program in 2003 was successful in expanding reserves to justify a greater than 25% expansion of daily throughput compared to historic production levels. The new proven and probable reserves based on a gold price of $350 per ounce, are 124 million tonnes at a grade of 0.86 grams of gold per tonne for 3.4 million ounces of gold (100%). Refugio will recommence production at 40,000 tonnes per day with annual gold production ranging between 225,000 and 260,000 ounces at a total cash cost averaging approximately $225 per ounce over a ten year mine life. Initial capital costs, on a 100% basis, for the expanded project are estimated at approximately $100 million.

The joint venture has commenced construction activities for the restart of operations which include the acquisition of a mining fleet, installation of electrical power lines to the site, upgrading the crushing facilities to 40,000 tonnes per day, and other support facilities. M3 Engineering and Technology Corp. have been selected as the general contractor for this work.

Kupol Deposit, Russia (Bema 75%)

Bema recently announced a preliminary Indicated Mineral Resource at Kupol of 2.5 million tonnes containing 1.8 million ounces of gold and 19 million ounces of silver at an average grade of 22.3 grams per tonne (g/t) gold and 232 g/t silver and an additional 7.1 million tonnes containing 4.2 million ounces of gold and 55.9 million ounces of silver at an average grade of 18.4 g/t gold and 243 g/t silver in the Inferred category. This resource estimate confirms that the Kupol vein system hosts a large, high grade gold and silver deposit. Bema has estimated the preliminary Mineral Resource based on 21,860 metres of drilling in 2003. Significant gold mineralization has been intercepted over 3.1 kilometres of drilled strike length and, from surface, to a depth of at least 300 metres. Mineralization remains open to the north, south and at depth.

An infill and exploration program comprising 57,000 meters of diamond drilling with 7 drills will commence in late May. Infill drilling will begin at Big Bend while exploration drilling will include deep drilling at Big Bend, the North Zone Extension and step out drilling to the north. Furthermore, Bema is currently procuring equipment and supplies for the Kupol project in preparation for the 2004 exploration and development program. The program will include construction of a runway for fixed wing aircraft, earth works for mine and mill facilities, geotechnical and condemnation drill programs, final metallurgical test work, and procurement of equipment for 2005 construction. Management believes that the ultimate target at Kupol is up to, or in excess of, 16 million tonnes with similar gold and silver grades to those stated in the preliminary mineral resource. (i)

Cerro Casale, Chile (Bema 24%)

Placer Dome is continuing to update the feasibility study and has initiated discussions with lenders regarding potential financing for the Cerro Casale gold and copper development project in northern Chile. Cerro Casale is owned by Compania Minera Casale ("CMC"), a Chilean contractual mining company owned indirectly by Placer Dome Inc. (51%) Bema (24%) and Arizona Star Resource Corp. (25%).

Placer Dome Technical Services Limited completed a feasibility study at Cerro Casale in January 2000 which estimated a measured and indicated mineral resources of approximately 23 million ounces of gold and 6 billion pounds of copper making it one of the world's largest undeveloped gold and copper deposits. The feasibility study contemplated a large-scale open pit gold and copper mine assuming certain parameters, including a life-of -mine gold price of $350 per ounce and a copper price of $0.95 per pound. According to the feasibility study, Cerro Casale could produce 975,000 ounces of gold and 130,000 tonnes of copper per year over an 18-year mine life. Cash production costs are estimated to be less than $100 per ounce of gold with total costs estimated at $203 per ounce of gold (assuming credits for copper at $0.95 per pound). Upon making a positive production decision, Placer Dome is required to arrange up to $1.3 billion of project financing and commence construction of the mine.

(i) The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define this target at this time and it is uncertain that further exploration will result in further discoveries on the property. The target referred to is based on follow up to currently untested, known strike length and down dip potential.

Monument Bay, Manitoba (Bema 70%)

Based on exploration work to date, Bema has identified a high-grade inferred resource of 418,000 ounces of gold with an average grade of 20.4 grams per tonne gold at the Monument Bay project located in North Eastern Manitoba. In January of 2004 Bema commenced a 15,000- 20,000 metre drill program at Monument Bay using three drill rigs. The program will test the main area of mineralization where the bulk of the inferred resource is contained.

Liquidity and Capital Resources

The Company's working capital at the year-end was $19.9 million (2002 - $17.5 million) which included $30.8 million (2002 - $16.7 million) in cash and cash equivalents. The increase in cash was due primarily to a private placement financing in the third quarter of 2003 for CDN$69 million. During the year the Company made scheduled debt payments to the Julietta project loan of $11.2 million reducing the debt to $18.3 million. A further $8.0 million in scheduled debt payments were made on the Petrex project loan, reducing the debt to $27 million. Subsequent to the year end Bema completed an offering of $70 million senior unsecured convertible notes due in February 2011. The seven year Convertible Notes were launched with a coupon rate of 3.25% per annum and a 37.5% premium (US$4.66 per share) to Bema's weighted average share price on February 11, 2004.

Petrex Mines is currently in discussions with the lenders in regards to a waiver for all of 2004, on certain covenants that Petrex was not in compliance with at the year-end. Discussions are proceeding well and the Company expects to obtain the required waiver shortly. However, should an agreement not be reached, then the balance sheet as of December 31, 2003 will have to be amended to reflect as a current liability the Petrex non-recourse project debt of $21.5 million and the working capital facility of $7.7 currently disclosed as long-term debt.

Gold forward and Option Contracts

The Company was required by the lenders of the Julietta and Petrex project loan facilities to enter into the majority of the following gold hedge contracts over the loan life period in order to cover the value of the mine's future operating and debt service costs.

2004 2005 2006 2007-2012
------------------------------------------------

Forward contracts
(ounces) 61,050 60,175 - -
Average price per
ounce $ 316 $ 329 $ - $ -

Dollar denominated -
Put options
purchased (ounces) 32,086 26,364 23,790 59,988
Average price per
ounce $ 289 $ 290 $ 290 $ 290

Rand ("ZAR")
denominated -
Put options
purchased (ounces) 146,244 136,806 125,316 225,888
Average price per
ounce ZAR 3,050 ZAR 3,100 ZAR 3,150 ZAR 3,225

Call options sold
(ounces) 12,500 - - -
Average price per
ounce $ 484 $ - $ - $ -

Contingent forwards
sold (maximum)
$320 strike price
(ounces) 20,000 10,000 - -
$350 strike price
(ounces) 33,000 34,500 36,000 168,000


In 2003 the mark to market unrealized loss was $7.5 million. For the fourth quarter the unrealized mark to market loss was $13.4 million.

Change in Derivative Reporting

In the third quarter of 2003, the Company adopted CICA Accounting Guideline 13, "Hedging Relationships" ("AcG 13") effective January 1, 2003, on a prospective basis. Under the new guideline, a company is required to document its hedging transactions and explicitly demonstrate that the hedges are sufficiently effective in order to qualify for hedge accounting. Derivative financial instruments that do not qualify for hedge accounting under AcG 13 are required to be marked-to-market with changes in the fair value of the derivative instruments recognized as unrealized gains or losses in the statement of operations. Although some of Bema's derivative financial instruments would qualify for hedge accounting, most would not under the stringent guidelines of AcG 13. However, Management's opinion is that most of these contracts will be effective in mitigating the Company's exposure to commodity price, interest rate and foreign currency fluctuations.

In order to provide more transparency and consistency in the manner in which hedging transactions are reported, the Company shall mark-to-market, and reflect in its operating results, all of its derivative financial instruments rather than only the derivatives that do not qualify for hedge accounting. As a result, effective January 1, 2003, the Company re-designated all its forward and option contracts, and interest rate protection contracts as trading activities, with changes in fair market value of the contracts being recorded as unrealized gains and losses in the statement of operations. In addition, realized gains and losses arising on maturity of these derivative contracts are also now disclosed separately in the statement of operations and no longer included in gold revenue. Prior to January 1, 2003, the Company had accounted for its forward and option contracts using hedge accounting, whereby gains and losses on forward and option contracts are deferred and recognized in gold sales revenue when the related designated production is sold.

Outlook

Management is focused on optimizing production, continued production growth and exploration for 2004. Bema is expecting to fully repay the Julietta Mine project loan during 2004 and will use part of the proceeds of the recent convertible note issue to fund the recommencement of production at the Refugio Mine. By the end of 2004 Bema plans to be debt free at two of its three producing gold mines. The Company's goal is to continue to increase annual gold production to over 1,000,000 ounces from the further development of existing assets.

On Behalf of BEMA GOLD CORPORATION

cheers GF.

Two little lines in shares magazine- "Bema is touting itself as a good purchase for a mining major thanks to strong reserves and the Julietta gold mine in Russia". If this is true it would seem to confirm what I have seen touted as the likelihood of the majors buying up-and-coming gold mining companies with well established reserves. This is much easier for them to do, than having to crank up the exploration infrastructure to seek new deposits (which takes a long time and high costs). In short the smaller mining cos are where it is at imho.

Spot on gallick called 100% right.

cheers GF.

Might be worth having a speculative punt on these today after the US job figures. All Yank markets looking weak. Interest rates unlikely to go up now, dollar maybe under threat.

Bema report next thursday.

cheers GF.

METALS STOCKS

Gold tops $400 for first time in two weeks
Jobs data drags U.S. dollar lower, lifting metals sector

By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 4:14 PM ET Aug. 6, 2004
E-mail it | Print | Discuss | Alert | Reprint | RSS

SAN FRANCISCO (CBS.MW) -- Gold futures closed above $400 an ounce for the first time in two weeks Friday, logging gains of around 2 percent for the session as well as the week, as disappointing U.S. employment data sent the dollar sharply lower.



CBS MARKETWATCH TOP NEWS
U.S. stock indexes close at 2004 lows
U.S. July job growth slows to 32,000
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Oil futures end the week under $44 a barrel
Google IPO launch remains uncertain




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"Gold has been held back on the falsehood that the U.S. economy was booming; which in turn, would make interest rates rise sharply; which in turn, would make the U.S dollar fly; which in turn, could only be bad for gold," said Peter Grandich, editor of the Grandich Letter, an investment advisory publication.

However, July's payroll growth of 32,000, "combined with several recent economic indicators, should put this fantasy to bed," he said.

That allows "the reality of horrific multiple U.S. deficits, a worsening energy crisis, a geopolitical landscape that must get worse before it can get better, and a polarizing national election ... to give the support gold needs to go to new highs and challenge $500 in the next 12 months or less," he said.

U.S. hiring slowed for a fourth straight month in July, the Labor Department reported earlier Friday. It was the slowest job growth of the year. See Economic Report.

Frederic Panizzutti, an analyst at MKS Finance in Geneva, called it a "collapse." He said that the dollar's pullback "acted as a catalyst for gold and silver, and both rocketed higher within minutes, ignoring any resistances on their way."

As traders scrambled for a safer investment, gold for December delivery climbed $7.30 to close at $402.10 an ounce on the New York Mercantile Exchange. The contract is up $8.40 for the week; it hasn't traded above $400 since July 22.

Higher gold prices ahead?

The small amount of new jobs created in July "will make it difficult for the Federal Reserve to raise interest rates," said Todd Hultman, president of Dailyfutures.com, a commodity information provider.

A slower climb in interest rates would be "bearish news for the dollar and bullish news for gold and the euro," said Ned Schmidt, editor of Value View Gold Report, an investment publication of Schmidt Management.

Hultman said prices for gold are likely to reach $450 by the end of this year.

Other metals futures, mining shares rise

Other metals futures closed mainly higher, taking their cue from the strength in gold.

"U.S. equities are in for a long, long bear market that will take out the bear-market low for the Nasdaq," said Schmidt.

Against such a backdrop, the "only place for North American investors to find future returns is gold, silver and euro-denominated bonds/deposits," he said.

Also on Nymex, September silver rose 2.5 cents to close at $6.775 an ounce. October platinum closed at $832 an ounce, up $4.70, and September palladium gained 60 cents to end at $214 an ounce.

September copper closed little changed at $1.278 a pound, down 0.2 cent. See the latest futures prices.

Silver and platinum ended higher on the week, but copper and palladium were lower than their week-ago levels.

Tracking inventories, copper supplies were down 990 short tons at 75,538 short tons as of late Thursday, according to Nymex. Silver stocks were down 610,208 troy ounces at 114.3 million, while gold inventories stood at 4.71 million troy ounces, unchanged from the previous day.

As for metals equities, key indexes also climbed for the session, but posted modest losses for the week.



Gains of nearly 7 percent in shares of Apex Silver Mines (SIL: news, chart, profile), and a climb of 5 percent in shares of Newmont Mining (NEM: news, chart, profile) and Placer Dome Gold (PDG: news, chart, profile), led the Philadelphia Gold and Silver Index ($XAU: news, chart, profile), which moved up by 2.9 percent to close at 86.67. The index was just below the week-ago close of 86.97.

The CBOE Gold Index ($GOX: news, chart, profile) also rose, adding 2.5 percent to end at 76.96. For the week, it was down 0.8 percent.

The Amex Gold Bugs Index (HUI: news, chart, profile) closed at 183.63, up 2.7 percent for the day, but down 1.3 percent for the week.


Myra P. Saefong is a reporter for CBS.MarketWatch.com in San Francisco


cheers GF.