Agnico-Eagle Mines Ltd. - AGE (U.S. AEM) Message Board

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Gold/Mining/Energy : Agnico-Eagle Mines Ltd. - AGE (U.S. AEM)

AEM 171.27

-6.5%

3:59 PM EST

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To: Robert J Mullenbach who wrote (521)	10/28/1999 1:26:00 PM
From: ahhaha	Read Replies (1) of 1612

I like this company, but I don't like the gold market now. I don't think there is much risk, but also, there isn't much return. It's just standard business practice, but I didn't like this: As part of this credit facility, the Company is required to put in place downside price protection for gold in the form of put options on approximately 20% of its total current gold reserves and resources. The cost of purchasing these put options will be financed, in part, by selling call options on a small percentage of the Company's by-product metal reserves. Consistent with its policy of the last 20 years, the Company will not sell away any of the upside on its future gold production. The banks are stipulating that the companies have to mortgage their futures in order to survive. I hate this. It's happening with a lot of companies. I wonder when authority will outlaw physical gold possession?

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