Doug,
I also agree with DoubleD, why has GATA got the ABX story dead wrong. Lots of posters have clarified the ABX position, and very accurately IMO. It would take a phone call to ABX to clarify, a read of their latest financials and a visit to their web site. GATA IS reporting inaccurate information on ABX. The ABX SI Thread has a bountiful supply of information to clarify, EXSHRCH has posted very accurately. The Yahoo board has much of the same information.
This erroneous type of reporting is appearing in many places, but those who have done their DD thoroughly know how the ABX Premium Hedging Program works.
How then can GATA retain its credibility with false reporting such as you have posted a few posts back??
ABX has the right to postpone the return of gold under their contracts, as I understand it during the period of ten years from contract date. They therefore do not have to come up with the gold all of a sudden if AU price rises. They have the protection of returning gold from production or deferring return to a future date. Now, we all know that the US$800 rise of the recent past for AU/oz was followed by decline, thus, it is pretty smart of ABX, IMO to have contracted such protection. Not only that there is other protections built into their contracts, mostly in ABX favor. In addition, their profit levels are astounding given the current market conditions, take a look at their cash position and expected cash positions, WOW.
The person trying to state a case that ABX should sue GATA is just wind. Why would ABX waste their time on such trivial actions, GATA has just put a dark cloud over their DD and should really search out the facts and clarify their statements. Anyone who had done their DD knows the facts and a suit would not change the facts.
By the way, I am a short term trader and have been in and out of ABX often, currently neither short nor long.
Best regards, |
