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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (7568)	9/1/1999 10:41:00 AM
From: Claude Cormier	Read Replies (1) \| Respond to of 81225

<< what happens if the mine cannot re-supply for whatever reason>> This may be a problem for small operator..but large operator are well diversified. They have several mines and are geographically dispersed. As well, they are hedged for only a small portion of their reserves...on average I would say 15%. I don't see too many risk of them not being able to deliver to their loans, if they want to. They will never have to buy gold with cash.

To: sea_urchin who wrote (7568)	9/2/1999 12:01:00 AM
From: Greg Ford	Read Replies (1) \| Respond to of 81225

Where do you get 10 to 14 thousand tonnes. Goldfields Mineral Services estimates CB lending to be about 4,000 tonnes. Even with all the hedging in 1999 it would be a stretch to get to 6000 tonnes. The delivery risk only exists if the price of gold continues to go lower. If the price goes lower then some mines might shut down and thereby close out hedges. If the price moves higher the viability of most companies is improved. It would only be affected if their hedging is below the new spot price and they have committed an excess supply of their current production. Greg