Bullion rise, reserves in focus as gold miners meet

DENVER, Sept 24 (Reuters) - The rally in gold bullion prices to a 28-year peak last week has driven gold mining stocks to new highs, in spite of the producers' struggle to control costs and to replace reserves.

Global gold mining executives will no doubt have to tackle the contrasting themes when they present their corporate pictures at the industry's annual meeting in Denver.

At the 18th Denver Gold Forum, which started on Sunday and runs through Wednesday, 72 companies will make their cases to mining analysts on the sell-side and 253 buy-side fund managers, said the Denver Gold Group, the organizer.

I think one theme that will be cast most starkly in contrast will be the difference between gold the asset, which looks better and better, and gold mining the business, which looks tougher and tougher all the time," said John Hill, director, metals research at Citigroup in San Francisco.

To be sure, gold mining companies are benefiting from bullion's rise. AMEX Gold Miners index <.GDM>, a gauge of gold producers' performance, rallied to a 16-month high on Friday, after skyrocketing 40 percent since the index hit a bottom in mid-August.

During the same period, gold has gained nearly $100 to Friday's peak of $739 an ounce, from a low of $641.10.