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Gold/Mining/Energy : Medinah Mining Inc. (MDHM) -- Ignore unavailable to you. Want to Upgrade?

To: K. Kornelson who wrote (17568)	7/23/1999 7:12:00 PM
From: superdow	Respond to of 25548

NEWMONT TO HEDGE GOLD DENVER, July 22 (Reuters) - Newmont Mining Corp. (NYSE:NEM - news), the largest U.S. gold producer, should make more money in the second half of 1999 than in the first half because of higher production and cost savings, President Wayne Murdy said. Murdy, who was named president on Wednesday, also said with gold prices at 20-year-lows Newmont would probably be considering hedging a portion of its production in order to put a floor under the price. Denver-based Newmont will report its second quarter results next week. Newmont earned $9.9 million, or 6 cents a share, in the first quarter. ''Clearly as we move forward you'll see (gold) hedging activity done at Newmont,'' Murdy, who had been Newmont's chief financial officer, said in an interview. Newmont has traditionally not hedged its gold production because its costs are low and it wants to give investors the maximum opportunity when prices do rise, Murdy said. Newmont's total cost of production is $238 an ounce, still below the current $255 a troy ounce price, although not at a level that ''gives you any margin'' for error, Murdy said. Much of the increase in production would come from overseas operations in Indonesia and Peru. The company has also been focusing on cost savings and is implementing a system worldwide that lets workers at all levels set standards and determine efficiencies. ''There's a continued press throughout the organization to lower costs,'' Murdy said. Murdy said hedging would represent a ''very, very small percentage of reserves,'' or a ''relatively large percentage of a year's production.'' He said it would be a ''different philosophy than what you see from some others (gold producers) and we're going to try to still maintain the maximum upside (potential).'' Murdy said hedging would be ''defensive'' and probably use ''puts'' rather outright forward sales. Newmont produces about 4 million ounces of gold a year. Murdy also said he expected more consolidation in the industry if gold prices stay low. He said hedging has allowed some higher cost producers to stay independent, but that such a strategy may only have delayed the need to seek mergers. He said while ''we look at it (acquisitions) all the time the key is discipline.'' Also making it difficult to set strategy is the plan by some countries to sell gold to help developing countries pay their international debts. Murdy noted that more than half of the 41 countries that would be helped by the initiative are dependent on gold exports, such as South Africa. Earlier Thursday U.S. Rep. Jim Leach, a Republican from Iowa and chairman of the House Banking Committee, said it was unlikely the committee would endorse a Clinton administration proposal to authorize the International Monetary Fund to sell 10 percent of its gold holdings to help the indebted countries.

To: K. Kornelson who wrote (17568)	7/23/1999 8:52:00 PM
From: Win-Lose-Draw	Read Replies (1) \| Respond to of 25548

You know damn well what I was asking for you to tell us!!!!!! Actually, no I don't. Questions of the form "who are you working for" have been answered repeatedly and at length. Questions of the form "why are you here" have also been answered repeatedly. Since those have been answered so often and so recently, and it appears that you actually read the posts here and are unlikely to be so bored as to want to hear the same answers over and over again, I'm afraid you have me at a complete loss as to what it is you want answered. If it is any of the above, just read back a few dozen posts and you'll see the answers. If you have trouble finding the posts of interest, let me know and I will be happy to provide pointers to both questions and answers. If you see Thumper, tell him we miss him. Have a nice weekend!