Hutch,
I was expecting something a little more than a rehash of Barrick's Q3 report from September 30.
Mr. Chen has provided, what appears to me, to be a very cogent explanation of what Ted Arnold likely meant, when he suggested that forward sales, were in fact short sales in disguise. Seems to me that as long as the right contractual arrangements can be made, this forward sold gold can be recycled several times.
In addition, since Barrick has one of the lowest costs of production going - then is it really to their benefit to hedge any production???? ... if they go under, 99% of the others will have already gone bye-bye.
Sure it may slightly enhance their bottom line for certain reporting periods, but in the long haul it looks overall detrimental - not only for Barrick, but for many others as well.
Best to you, Hutch.
MB |
