Eldorado Message Board - Msg: 12861884

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Gold/Mining/Energy : Eldorado

ELD 33.19

-0.4%

Jun 14 5:00 PM EST

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To: Ray DeMoss who wrote (482)	2/14/2000 4:19:00 AM
From: Alex	Read Replies (1) of 527

From their Nov. 10th/99 news release............ The Company built a hedge position over the period 1997 - 1999, to protect itself against falling gold prices and to ensure that funds would be available to reduce the Company's bank debt. In that period, the hedge program yielded profits totalling US$19 million; in addition, a total of $15 million in cash was generated by unwinding parts of the hedge, of which $10 million was used to reduce debt. Building and maintaining a hedge book was therefore essential in enabling the Company to keep advancing its projects in Brazil and Turkey, even as prices dropped to below $260 per ounce. The Company now believes there is room for optimism about future gold price movement. Maintaining a hedge position will continue to be necessary as the Company reduces its debt over the next 2-3 years, but the Company intends to take advantage of opportunities that arise to reduce and restructure the position, as well as allowing it to diminish steadily with production. eldoradogold.com

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