Barrick,...I only hold what is in the gold unit trust I hold,...has 10 or 15 other gold stocks too,..XGD,t.
My point is only Barrick doesn't care if the POG goes up. Locking in a price for gold in the ground isn't going to hurt them, and they are not the snake everyone says they are. The reality of Barrick will come to the forefront in a few quarters when the income statements continue to show profits, and many of the others look chitty in comparison,...given current POG. If POG rises, more leveraged players will do better initially, but many currently have near US$400 POG's built into their prices,..something Barrick is not reflecting at the moment.
Barrick has the strongest balance sheet in the industry, even with the off balance sheet items (in excess of US$5 Billion in cash), they have near the highest cashflow and profit now and in the future,...and they will make a chitload more money if the POG climbs. It's all up to the POG.
Barrick got their gains years ago,...and the others are catching up now,...only because of the gains in the POG. I would not presently, and have said many times recently that I would not invest in Barrick right now as many more gold producers have much better leverage to a rising POG, but that's only because they will go from losing money to making money,...while Barrick is already making money with current POG. Perhaps you have not read my latest theses (gggggggggggggggggggggg)
In any event,...I look forward to those beers under the mango trees,...and this is definitely the kind of discussion I know we would carry on for hours, and neither of us would win, because we are full of too much hot gas (gggggggggggggggg),...the wives would leave us to be bitten by the mosquitoes. |
