NORTHGATE EXPL (NGX.TO) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : NORTHGATE EXPL (NGX.TO)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: russet who wrote (30)	6/7/2002 4:21:09 AM
From: peter snowdon	of 158

There is no way you lose money, unless the bullion banks stop lending you gold, which would force you to buy gold with cash. that's how i see it too. you can lose accounting money you never had by forfeiting exposure to a sudden rise in POG. but you can't lose real money, if you are producing for less than you write the calls for. the major risk in normal (non-Ashanti-type) hedging is not directly related to POG, but is counterparty risk. i think there may be reasons for some companies to take that seriously, but NGX is not one of them. my only concern with the calls was how much short-term cash flow NGX might lose if POG were to suddenly spike higher. still, whatever happens, we still have all that unhedged copper...:-) peter "a dollar a pound" snowdon

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next