Mish's Global Economic Trend Analysis 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.

Strategies & Market Trends : Mish's Global Economic Trend Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: regli who wrote (43955)	1/6/2006 2:25:24 AM
From: LLCF	Read Replies (2) of 116555

<The 13.6 million ounces (over 4.2 tons) is more than 2.5 years of their total production. > 2.5 years of production doesn't worry me much to be honest... not so far as default talk, etc..... not that I'd ever own the stock. Just think of where the stock would be trading with another few BILLION in revenue flowing in over the next 2.5 years!! Just a quick back of the envelope... if gold rockets another 100 points from here that's another 1.3 billion bucks... OUCH. But they presumably don't have the banksters breathing down their necks (margin call) yet... and they just took in over a 1.3 Billion in CASH if the Placer deal closes. Meanwhile every 6 MONTHs or so another 2 million OZ's come out of the ground and get delivered (using your numbers roughly... again I don't know bupkiss about ABX) turning nearly a billion of Butlers losses into a profit. Further more, if gold stays stable, ABX's profits will EXPLODE as these contracts are delivered and the new hedges go on (or they simply sell) at current prices. I'm not saying there won't be trouble at ABX, but it looks to me like you need a moonshot to make it happen... AND FAST. We can only hope. :__) DAK

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next