Barrick Gold (ABX) Message Board

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Gold/Mining/Energy : Barrick Gold (ABX)

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To: russet who wrote (2972)	5/21/2002 5:54:12 PM
From: nickel61	Read Replies (2) of 3558

Gold is currently trading at about $316, but Barrick is averaging $365 per oz on their hedged gold. Selling at spot is pulling their average down. They are only claiming the $365/ounce by assuming that the gold they borrow and sell short today is going to produce proceeds that can be invested for enough years at 5% to equal $365 gold. This is an accounting trick nothing more..what don't you understand? If they were willing to do this on the balance sheet it would be obvious to everyone that they are not doing anything except shorting their own product and buying US treasury bonds and claiming that the time between the short sale and when they close it is going to produce a profit equal to the compound interest they earn. WOW what could be clearer? It is total bs..what is even unique about this except they are hiding it by doing it off balance sheet and claiming somekind of miracle sale price. You yourself have admitted that this is what they are doing. Why do you keep acting as if they are really getting somekind of special price.

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