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Gold/Mining/Energy : Gold Price Monitor

GDXJ 109.23

+3.7%

Nov 28 4:00 PM EST

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To: Enigma who wrote (44847)	11/11/1999 3:56:00 PM
From: Ken Benes	Read Replies (2) of 116780

Cash flow, balance sheet, production, reserves are great for the company, however, if they do not result in a rising share price, what are the benefit for the shareholder. People invest money to realize a profit. While a hedging program may produce desireable benefits for a companies balance sheet, in the end if a companies shares do not appreciate, it is a poor investment. ABX has been a poor investment despite its innovative hedging program. A comparison to other less dynamic producers, indicate no significant advantage for barrick. The recent events hallmarked by a significant and sharp rise in the pog further illustrated the weakness of the large hedgers. They underperformed the group, and exposed the other side of the hedging programs. A sharp and swift rise in the pog can swiftly change a hedging program from an asset to a company threatening liability. Can we finally put the praises of hedging for gold producers to rest. Ken

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