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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Bid Buster who wrote (160028)4/15/2002 1:40:32 PM
From: Rarebird  Read Replies (1) of 436258
 
After producing 6.1moz last year, ABX's reserves went from about 79moz to about 82moz, which signifies they added about 9moz, replacing 150% of production. One may think they merely transferred resources into the reserve category, and it would have dropped, but it also went higher. Barrick managed to find over 18moz internally. Newmont paid billions for Normandy to get close to 26moz of reserves, while Barrick found close to 70% of that in-house.

Another way to look at it is Barrick discovered enough gold last year alone to cover their entire gold forward sales contracts. That makes Barrick 20% hedged, 80% unhedged, relative to reserves. For 2002, 50% of production is sold at $365, and the rest will be sold at spot. That doesn't look to me like a company that is going to "crash and burn" if the POG hits $350 this year, which is quite possible.

There are plenty of "Crusaders for Truth." They come a dime a dozen. They are all over the world.

PS Didn't you know that Truth is also a myth? g
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