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

To: Robert Dirks who wrote (42178)	10/5/1999 2:22:00 PM
From: John Paquet	Read Replies (1) \| Respond to of 116837

Fed leaves rates unchanges but adopts tightening BIAS, Dow tumbled from +100 to +0 and +15 @10416 This scenario foretell Black Monady Dow will tumble 600 points or 800 points. Gold $417.50 John Paquet

To: Robert Dirks who wrote (42178)	10/5/1999 4:27:00 PM
From: long-gone	Read Replies (2) \| Respond to of 116837

re : NEM positions just received this from IR. In recent months, we have entered into 3 contracts: First, a prepaid forward sales contract, essentially a gold loan, in which we ag reed to deliver 161,100 onces of gold per year in years 2005, 2006 and 2007. We will receive a minimum of $300 plus all additional revenue up to $380 an ounce at the time of delivery. This gold loan was used to reduce revolving credit debt ($137.2 million). Secondly, we puchased puts for 2.85 million ounces to be delivered over the next two years at a strike price of $270. This was done for price protection only and does not involve forward sales. The puts were purchased through the issuance of long-term call options which is a hedge. The calls are our third transaction. This involved the issuance of call options for 250,000 ounces a year in 2004 and 2005 at $350 an ounce; 500,000 ounces in 2008 and 2009 at $380 an ounce, and 50,000 ounces a month for for 17 months beginning in March 2008 at $392 an ounce. If the gold price reaches these levels in those years, we have the option of rolling the contracts into a spot deferred contract. The put/call contracts create a floor price for one-third of our production over the next 2 years while potentially committing only 4 percent of our reserves. All three transactions therefore involve the commitment of only 5 percent of our reserves, leaving us the most leveraged of any company to the gold price. I hope this answers your question. If I can be of any further assistance, please send an email or call at 1-800-810-6463. Jodi Bochert Shareholder Relations