Gold and Silver Mining Stocks Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Mining Stocks

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ptaskmaster who wrote ()	6/10/2000 5:40:00 PM
From: russwinter	Read Replies (1) of 4051

Homestake: Deserves some credit. Should be a candidate for those looking for a large cap stock with a real call on gold. Will be big beneficiary of a gold rally with only 4 months production hedged and at very high prices. HM on the hedging front can take credit for buying back 245,000 oz of forward sales on July 29, 1999 when POG was 254. Struggling with high costs mines, they are betting on Veladero (Arg.)producing 500,000 oz/yr at cash cost of about 150 starting in 2003. Currently producing 2.4 million @ 192 cash cost. HM is one of the more modest hedgers in the industry with 392,000 forward sales @ 410, of which 259,000 is geared for post 2003 after Veladero starts up. They have another 150,000 sales @ 343 on their Australian properties, and have purchased 190,000 in out of the money puts at 268 expiring 2000-01 (a smart strategy). There are 175,000 calls written at 265 expiring this year. For a great chart of the total cost of production among a group of producers, see the following on the HM web site and scroll to page 4. Well illustrates the liquidation of capital argument I've been making: homestake.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next