REYNOLD METALS <RLM> UP ON FURMAN SELZ REPORT Shares of Reynolds Metals Co rose sharply after Wall Street firm Furman Selz Mager Dietz and Birney issued a report focusing on the strong earnings potential from the company's Australian gold holding, traders familiar with the report said. Traders said the report notes that earnings from Australian gold holdings could be worth about 35 cts to 55 cts a share this year and 1.40 dlrs to two dlrs a share in 1988. Reynolds Metals rose three points to 59-5/8 on volume of 729,500 shares. Reynolds owns stakes in the Mount Gibson gold project and the Boddington gold project, both located in Australia. An analyst familiar with the two mines said "the properties, together, have a potential value of 20 dlrs to 40 dlrs a share for Reynolds." The analyst, who asked not to be identified, said the rise in the stock today was likely the result of "U.S. investors that were not completely cognizant of the size or the importance of the (Reynolds') holdings in Australia." Traders said the Furman Selz report indicates that gold was discovered mixed with bauxite in the Boddington mine. Boddington is principally a bauxite mine. The traders said the report goes on to say that the profits from the Boddington gold with substantially reduce the production costs of the other metals mined at Boddington. Traders said Furman Selz also boosted its earnings estimates, expecting Reynolds Metals to earn 4.10 dlr a share in 1987 and eight dlrs a share in 1988. Last year, Reynolds reported net earnings of 8.18 dlrs a share, which included 3.09 dlrs a share for adoption of new accounting rules, 1.01 dlrs a share for tax loss carryforwards and other extraordinary items.