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Gold/Mining/Energy : Gold Price Monitor

GDXJ 94.04

+0.6%

Nov 21 4:00 PM EST

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To: Enigma who wrote (33726)	5/12/1999 2:03:00 PM
From: John Hunt	Read Replies (1) of 116764

Barrick Premium Gold Sales Year * Spot Gold * Pemium * Recv 1994 * 384 * 18 * 402 1995 * 384 * 22 * 406 1996 * 388 * 27 * 415 1997 * 332 * 88 * 420 1998 * 294 * 106 * 400 Barrick Premium Gold Sales Program represents a $4 billion asset, which earns more than $200 million per year in interest income. Source: Barrick's site under premium gold sales barrick.com ***** Hi DD, Thanks for pointing out the $200 million was interest. Note this $200 million on $4 billion is interest at a rate of about 5%, so I would presume they are investing most of the money from the gold sold short in treasuries. IMHO, these guys are speculating big time, not hedging. They have currency risk and treasury price risk and gold price risk. They are naked short the gold until it is produced as I doubt they have 4 billion worth of current or near-term production. (Will have to dig some more to see how many months/years production $4 billion is.) John

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