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Gold/Mining/Energy : Gold Price Monitor

GDXJ 96.06

-1.4%

Nov 17 4:00 PM EST

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To: Enigma who wrote (8597)	3/20/1998 12:07:00 PM
From: Greg Ford	Read Replies (2) of 116762

I agree. They are in an excellent position. I wouldn't be surprised if ABX pursued someone like Newmont for example especially if the low gold price persists. It makes sense in that they share the same orebody and they have significant operations in Peru. Newmont is a non-hedger and ABX could add value as a result. The issue would be price and the accounting treatment. ABX is a Canadian company and can only adopt pooling accounting in very specific instances. This may cause ABX to look elsewhere. I think ABX has disclosed that they have 10 year trading lines. They have been able to earn a higher return than treasuries on their hedge book. Do they use equity linked products as part of their hedge book (ie are proceeds from their hedge book invested in equities thereby earning a higher contango with more risk)? Greg

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