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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Edmund Lee who wrote (1284)	6/30/1999 11:13:00 AM
From: Ron Everest	Respond to of 3558

Barrick is not so interested in the immediate share price IMO. They will hand on to their hedging program to ensure the survival of their bottom line. There are no guarantees that the price of gold will rise or drop further. The program will ensure that ABX is highly profitable and has good cash flow for at least another 3 years. After that time, it will still be a survivor at these and even lower gold prices because they have low cost production. My view is that the market is so jaundiced towards gold that it is affecting even blue chip gold/gold hedging stocks such as ABX. The day in the sun will come when gold does make a move. In the meantime, lots of opportunitys - daily even - to trade in and out of ABX for reasonable returns. Never fall in love with your stocks, they are very fickle. Thanks for your post.

To: Edmund Lee who wrote (1284)	6/30/1999 11:24:00 AM
From: Exsrch	Respond to of 3558

Edmund Lee, From a fact basis I think you misunderstand the value of ABX's hedging program and how it works. Let me explain: Yes, even ABX talks of how much could be made if they unwind their position; however, don't let that discussion lead you to believe it is possible to unwind all 12.5 million ounces today.(unless ABX doubles production and reserves by buying NEM. Which by the way I advocate for that very reason). ABX can only physically deliver 3.5-3.8 million ounces back to CB per year so they are in fact unwinding the maximum as it is. And you as a shareholder are receiving that benefit already in the form of earning, cash in bank, capex investments and strong balance sheet. Thanks for your post and look forward to hearing from you again. Cheers, Exsrch