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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Exsrch who wrote (38431)	8/5/1999 11:59:00 PM
From: russet	Read Replies (3) \| Respond to of 116764

Hi Exsrch, the following is taken from Barrick's 2nd quarter results news release. ******************************************************************** In the first half, Barrick's Premium Gold Sales Program generated $208-million in additional revenue. The company realized an average price of $385 an ounce on its gold sales, a premium of $105 per ounce over the average spot price of $280 for the first six months. The company's production through 2001 is sold forward at an average minimum price of $385 per ounce. Barrick currently has 13.3 million ounces sold forward. I look at the above, "13.3 million ounces sold forward" and think that cantando may be part of the hedging program, but formal forward selling is another part. What if they decide they need the money they are investing in the cantendo program to buy some cheap gold in the ground (or some other metal like PGM's),...what then?? the whole cantando program goes to ???? and they start selling on the spot market. Something is missing here I think. I think they are definitely writing forward future sell contracts for gold and doing other neat things as well. I don't think cantango explains it all. Just my opinion, I could be wrong. Please explain. Barrick won't explain it all to me, they say it is proprietary knowledge they don't want to share. tia