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Gold/Mining/Energy : NORTHGATE EXPL (NGX.TO)
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To: peter snowdon who wrote (9)6/6/2002 12:16:00 PM
From: tyc:>   of 158
 
>>i'm not sure a hedging position is an 'operating blunder'

I agree with you completely. The company was faced with a debt of US$100,000,000. In the face of a volatile gold market that was something to be concerned about. The hedging requirement was for a million oz, one third of their reserves, but it would very neatly have allayed the worry of the debt. Frankly, I would have preferred this arrangement to the dilution implied by the new equity issue.

The big plus, however, is the elimination by conversion of the preferred shares. I like that !
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