Vista Gold (VGZ) Message Board

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Gold/Mining/Energy : Vista Gold (VGZ)

VGZ 1.780

+8.2%

Nov 10 3:59 PM EST

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To: yard_man who wrote (150)	1/23/1998 8:12:00 PM
From: PaulM	Read Replies (2) of 379

Barry it's not too early. It was a mistake if for no other reason than that they could have hedge today at $300. When you hedge your basically betting that the price won't be higher for the foreseeable future. That's why I felt the $282 hedge would be viewed in retrospect as a panic move. Having said that, this now all 20/20. Businesses need certainty. They're not nutty speculators like you and I. The overerall effect of their market moves at the $280 price was to reduce their hedge from 200000 ounces to 90000 ounces. So overall they bet right. No need for despair amongst the gold bulls (I'm one in that I expect to see at least $350 at some point in 1998). This stock should be very sensitive to upward AU movements. They can satisfy much of their contract gold payments out inventoried gold. That means that if Hycroft goes full steam all year, much of it will be sold at market price or future hedge price. At $325 gold, they can get fianncing for their SA new mine, in effect at these price levels adding a whole new asset and future stream of payments to the picture.

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