Still don't want to read Barrick's financial statements do you? Would rather read the bullchit spewed on the Gata threads, and if there is one thing that is stink'in up the joint, its Gata and the crap posted on the Gata threads.
If Barrick had a significant loss on Enron corporate bonds, their auditors would have forced them to write off the loss this quarter, and if that loss affected their balance sheet they would have mentioned it in the notes. As it is not there, there is no proof except the silly gossip on Gata threads that this occurred. Many oil and gas companies wrote off derivatives in which Enron was a counterparty,...there is no reason for Barrick not to.
You say that Barrick has counterparty risk in their gold hedging program. How do they have counterparty risk on their gold hedging program when it is Barrick that owes the 18 million Au oz to the central banks, and Barrick wrote the 5 million Au oz worth of gold calls? Barrick has the liability to repay, not the other party, and Barrick is the counterparty the others have to worry about, not the other way around. Your arguments (or is it Gata's) on counterparty risks on Barrick's Gold hedging program are foolish.
That letter from Kinross is pretty funny too, considering that Kinross's reply dispelled every problem the shareholder thought was a problem in his letter. If there is a specific one you are worried about, perhaps you could point it out, and refer to Kinross's financial statements as to why it is a problem.
Pretty good day for Barrick considering many of its TSE listed gold producer competitors (especially the unhedged ones) were down significantly today with the metal. Now that Oliphant has come out and dispelled the Goldfields and Anglogold rumors today, perhaps the damage done by the arbs yesterday will be reversed tomorrow. Might have to swingtrade the gold index tomorrow if the POG cooperates. Actually if Goldfields came down a bit in price, it might be a nice grab for Anglo and Barrick to pick it up. This is better than the first speculation the Gata nuts had that Barrick was doing a hostile takeover of Anglogold.
What Murphy and his Gata nuts won't do in their rumor and bullchit department to get the rest of the lemmings to buy up and inflate their gold positions. I wonder if he is adequately protected by disclaimers at his site to protect him from legal action if gold reverses and trends down towards cash costs again. Might come to pass that he'll become the defendant in a lot of class action lawsuits by angry bagholders. Of course I haven't read any of his balance sheets and income statements or cost reports, so I know little to nothing about risks he has hedge himself out of (ggggggggggggggggggggg) |
