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

To: long-gone who wrote (42314)	10/7/1999 12:38:00 AM
From: Claude Cormier	Read Replies (2) \| Respond to of 116837

""In early August, Newmont purchased put option contracts for 2.85 million ounces of gold, with a strike price of $270 per ounce, over a 24-month period beginning August 1999 through July 2001. This purchase was paid for by selling call option contracts for 250,000 ounces per year in 2004 and 2005, with a strike price of $350 per ounce, and for 1.0 million and 850,000 ounces in 2008 and 2009, respectively, at an average strike price of $386 per ounce."" Looks like the calls they sold will not be ITM before $350. Even then, NEM will add a liability of only $12.5M for each increase in the price of gold. It could become a proble if gold rise to $400... but again it will depends on the terms of the calls they wrote. Are they delievrable at anytime or only at delivery date...??? That is the big question that makes all the difference. CC