I will add Stephen those points:
- If the POG stays above $US 320, there is a high possibility that BHK will be able to operate the Keystone mine for a extra 3 months. Because this extra production is not hedged, that could bring some need cash flow next year.
- Again, if the POG stays above $US 320, their project in Maine is more valuable. I they have the green light from the state of Maine, this project could be bring in production quickly.
- Again, if POG stays above $US 320, they could received some offers for the exploitation of their resources in the Hoyle Townships.
- Finally, right now with the putt and call options that BHK has in place, we can partly concluded that they will not benefit from the recent surge of POG. Fortunately, they only hedged their estimated production. The markets seem to forget that BHK could benefit form the surge in the POG if the El Limon mine produce more and/or if they can reduce their cost energy.
Yours truly,
Gilbert Leblanc
People are scared shitless by any company that has hedged their gold production. BHK has hedged the bal of 1999 and all their production for next 2 years with call options averaging at $276 and $273. They are negotiating with their writers of the options about margin requirements. I would expect a news release when that is done. Ron Struthers in his newsletter has now advocated selling BHK based on him discovering this hedging. What he forgets is that their other 3,400,000 oz of unhedged resource has just increased in gross metal value by $136 million US or about $1.60 per share Cdn |
