I don't know, but these quotes by you seem to indicate that barrick is a marvelous stock poised to profit from a rising gold price. I don't think so. History has demonstrated that the seasoned and erudite management you spoke off, has been sacked along with the appreciation of the company.
February 25, 2003
Newmont don't look too much like a growth stock,...a whole lot of juniors look better (gggggggggg) Think of me as the leach on the seniors,....I don't think any of them are worth chit. But I know that having Munk at the top of Barrick, gives them a big edge.
January 10, 2003
11. Has Barrick benefited from the increase in the gold price?
Most definitely. Barrick has one of the largest reserve bases in North America and the majority of these reserves are unhedged. The size of the reserves gives Barrick shareholders excellent leverage to the gold price. Thus, an increase in the price of gold raises Barrick's value significantly through the benefit of future earnings and cash flow. In the event that the gold price rises significantly above Barrick's hedging price, there could also be an increase in reserves. Material that is uneconomic at lower gold prices becomes ore at higher gold prices, increasing Barrick's already large reserve base.
12. Will Barrick continue hedging?
Barrick is committed to its hedge program and is able to take advantage of rallies in the gold price. If the gold price rises through Barrick's hedge price, the Company will sell its gold at the higher spot price and keep the contracts for a future date when the gold price may not be so attractive. The contracts will likely continue to rise in value the longer they are outstanding.
13. How will increases in the gold price affect Barrick's share price?
The Premium Gold Sales Program is structured to allow the Company to take advantage of rising gold prices. Barrick's shares have moved up over time showing a strong correlation to movement in the gold price. Thus, Barrick's shares are likely to appreciate consistently with a rising gold market and, at the same time, offer the comfort of downside protection through its unique hedging program. |
