Manhattan Minerals (MAN.T) Message Board

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Gold/Mining/Energy : Manhattan Minerals (MAN.T)

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To: Bruce Robbins who wrote (3781)	10/24/1999 2:03:00 PM
From: Sailfish	Read Replies (1) of 4504

Hi Bruce... From : smh.com.au On Friday, as the gold price dipped to about $US303 an ounce, Ashanti won a third margin call postponement (until late today (OCT25th)) with the fall in gold in the past few weeks reducing losses on its hedge book to a more manageable level. If the gold price holds at about $US305, Ashanti will not face margin calls, since its losses are covered by an existing revolving credit facility and it will not face enforced short covering, thus removing a major source of buying from the market. Other investors who are still short gold are in a similar position, with the pressure on them to do something diminishing with every dip in the gold price. It is estimated that Ashanti alone faces margin calls of $US270 million ($415 million) at a $US325 an ounce gold price, increasing to about $US500 million at $US350 an ounce. ================= ================= The two main camps in this regard range from "Anshanti has hit the wall" to " interventions by third parties will result in the POG remaining in it's current range and possibly even move slightly below $300 US".... However, any interventions, IMO, will only serve to postpone the inevitable... Either scenario makes MAN's expanding Au/Ag oxide cap look better every day... Regards....Ray

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