Precious metal company Warrants 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 : Precious metal company Warrants

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LLCF who wrote (421)	2/9/2006 9:34:10 PM
From: tyc:>	Read Replies (1) of 681

Yes it is interesting IF I am correct. The company has a newly commissioned nickel/copper mine in Spain. The major problem been technical difficulties in getting the design grade of nickel in the concentrate, but the last news report indicates that this problem is being overcome. Production financing required them to hedge their copper production, and the hedges were at ~US$1 per lb of copper. As the price of copper has increased above this level, the hedge book has shown losses, of course. It is my belief that the losses in the hedge book have been accounted for as actual losses even though they are a non cash item. Surely that means that if/when the price of copper falls the improvement in the hedge book will be reflected as profits..... the "profits" of this copper producer will be enhanced by falling copper prices !!(even though hedge book losses/profits are not a cash figures). I don't know how long the copper hedges last. They are also building a new gold mine in Mauritania. I am not an accountant. Please don't be influenced by my surmise. Check for yourself.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next