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

To: Scripts who wrote (42310)	10/6/1999 8:12:00 PM
From: Robert Dirks	Read Replies (3) \| Respond to of 116764

Slightly extensive. I heard they are hedged at $318 until 2007 ! Why bother mining? They are in big trouble now. HM had a 9 million block traded today. Has to be a fund or a very big investor putting up very big bucks......

To: Scripts who wrote (42310)	10/7/1999 12:26:00 AM
From: Claude Cormier	Respond to of 116764

<<Not sure but I think Cambior had an extensive hedging program. >> Having a hedging program is not necessarily a p[roblem. All depends on how it is structured. In Cambior case, not only they have forward sales contracts, but they also but puts. In itself, this is not bad. Where it hurts is that tin order to pay for the puts, the sold calls options on gold 315. They hsold for 1.9M ounces of calls. These calls are now ITM (In the money) and for each $10 in price of gold, CBJ liabilities increases by $19M. The problem know is to find out what type of options they contracted. Europeans or Americans... Europeans ioptions can be exercised on expiry (delivery) dates. In that case it is no big deal, as the calls become deferred liabilities. But if the are Americans style... the liabilities are effective now. The news from Ashanti and the way CBJ stock went down after the release on their hedging programs seems to indicate they are American style options.