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Gold/Mining/Energy : Barrick Gold (ABX)
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To: nickel61 who wrote (3038)5/22/2002 11:27:16 PM
From: russet   of 3558
 
I didn't say that it will reduce the Barrick hedge book by $21 dollars/ounce Oliphant did at the quarterly meeting. That is the sensitivity to a rise in gold price that he gave when asked. That has been posted here I believe so we really don't have much to argue about.

Once again trying to change what you said eh. Typical.

What is this $21 dollar per oz crap..

This is what Barrick says,...now if you going to argue with this, give us some facts.

The Globe and Mail reports in its Thursday, May 9, edition that Barrick Gold says it plans to simplify its gold hedging strategy and make it more conservative. The Globe's Allan Robinson writes that Barrick says it will no longer invest cash from the forward sale of gold in a corporate bond portfolio, but will instead invest it with major financial institutions at a slightly lower rate of interest. The hedge portfolio is currently worth $5.5-billion of which about $758-million is in fixed-income corporate bonds (all figures U.S.). Barrick plans to reduce its call option position by at least 50 per cent or three million ounces by the end of the year. Its spot deferred hedge position of 18 million ounces or 22 per cent of reserves will stay unchanged. Since 1996, the hedge program has generated $1.7-billion in additional revenue above the spot price of gold. Barrick says it expects to sell half of its gold production at the spot price and half at its hedge price of $365 an ounce. Gold traded Wednesday at $308.20, down $3.40. Every $25 increase in the average spot gold price will increase Barrick's earnings by about $70-million or 13 cents a share.
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