Gold Price Monitor Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor

GDXJ 113.78

-1.2%

Dec 31 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: long-gone who wrote (42314)	10/7/1999 12:38:00 AM
From: Claude Cormier	Read Replies (2) of 116837

""In early August, Newmont purchased put option contracts for 2.85 million ounces of gold, with a strike price of $270 per ounce, over a 24-month period beginning August 1999 through July 2001. This purchase was paid for by selling call option contracts for 250,000 ounces per year in 2004 and 2005, with a strike price of $350 per ounce, and for 1.0 million and 850,000 ounces in 2008 and 2009, respectively, at an average strike price of $386 per ounce."" Looks like the calls they sold will not be ITM before $350. Even then, NEM will add a liability of only $12.5M for each increase in the price of gold. It could become a proble if gold rise to $400... but again it will depends on the terms of the calls they wrote. Are they delievrable at anytime or only at delivery date...??? That is the big question that makes all the difference. CC

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next