Dutch Central Bank Sale Announcement Imminent? 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.

Politics : Dutch Central Bank Sale Announcement Imminent?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Hawkmoon who wrote (3872)	3/4/1999 1:42:00 PM
From: long-gone	Read Replies (2) of 81084

<<I certainly don't think I would be selling forward 3 years unless I was pretty sure those options would never be exercized by the other party.>> Ron, Before you start talking about hedging and forward sales you might wish to fully understand the workings of the practice. Please review this from one of my holdings. << The company not only used hedging to manage its revenues but also to raise cash. A repurchase of 250,000 ounces of gold forward sales in early 1998 generated $8.7 million in cash. ... With the company's current gold hedge position, Echo Bay will realize a minimum average price of $349 per ounce for approximately 429,000 ounces in 1999 -- over 90% of 1999's planned gold production. Of this, over 35% is in the form of put options, Above the strike prices (ranging between $300 and $311 per ounce). Approximately 5.2 million ounces of the 1999 planned silver production is also currently hedged and will realize $5.76 per ounce. >> Key here is "allowing for participation in gold price rallies". rh echobay.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next