Newmont Mining(NEM) & Newmont Gold(NGC) Message Board

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Gold/Mining/Energy : Newmont Mining(NEM) & Newmont Gold(NGC)

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To: Broken_Clock who wrote ()	5/26/1998 9:45:00 PM
From: Broken_Clock	Read Replies (1) of 587

Some thoughts to start off with... I have chosen to work with NEM rather than NGC since NEM is a much more liquid stock/option. Also, NEM owns 94% of NGC so participation factor is nil. NEM is relatively unhedged to POG compared to other senior gold producers, especially N. American companies like Barrick. This causes NEM to be more volatile than ABX whcih has the effect of "juicing" up the premiums on options for NEM. I will be looking at two ways to buy NEM tonight: 1.Buy in the money calls well below recent lows, if possible. i.e. NEM closed at 26 3/8 today. September 22.5 calls are ask 5 1/8. This would equal buying NEM at 27 5/8 at expiration in September. If NEM revovers by September to the $30+ range then this is the way to go. Should NEM stay under $27 5/8 till September then this is not a good idea. 2. Average in at the current prices and write calls monthly as prices leg up.

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