Well at least Barrick management seems to agree with me>>>>
Barrick To Simplify Premium Gold Sales Program
WILL FOCUS ON CORE SPOT-DEFERRED CONTRACTS
AS CALL POSITION IS REDUCED;
ALL AMOUNTS IN UNITED STATES DOLLARS
TORONTO, May 8, 2002 -- Barrick Gold Corp. announced today at
its annual meeting in Toronto that it is simplifying its Premium
Gold Sales Program. The company said it will not renew its gold
call and variable price sales contracts, which should result in a
3-million ounce reduction in the position by the end of the year.
"A simple spot-deferred program makes more sense in today's
environment," said Jamie Sokalsky, senior vice president and
chief financial officer. "The overall program will be simpler,
smaller, and better positioned to take greater advantage of
rising gold prices. At the same time, it will continue to generate
significant additional revenues and provide secure and
predictable cash flows."
Overall, at the end of the first quarter, the company had 18
million ounces of spot deferred contracts, representing 22
percent of reserves, and 6 million ounces of call and variable
price sales contracts in the Premium Gold Sales Program.
Barrick is simplifying the Program in two ways. First, it will
not renew call and variable price sales contracts, and expects
this position to decline by at least 50 percent, or 3 million
ounces this year.
Secondly, the company will no longer invest a portion of its
spot-deferred contracts in corporate bond funds, and will
instead leave all proceeds invested with its average AA-rated
bank counterparties.
These changes are further to Barrick's previously announced
decision to sell 50 percent of its production at the spot price,
for the first time in 14 years. In prior years, 100 percent of
annual production was delivered against the Premium Gold
Sales Program.
"We have no plans to increase the number of ounces in our
spot deferred position in today's gold market -- even with the
new generation of mine projects in front of us," said Sokalsky.
Barrick is a leading international gold producer with eight
properties on four continents and an unmatched pipeline of mine
development projects. |
