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

To: paul ross who wrote (42376)	10/7/1999 1:31:00 PM
From: Serge Ladouceur	Respond to of 116836

Bema gold hedging status Bema Gold Corporation BGO Shares issued 112,112,453 1999-10-06 close $1.68 Wednesday Oct 6 1999 Mr. Mark Corra reports All dollar amounts in this news release are in U.S. currency. Given the recent price volatility in gold and the resulting concerns about gold producer margin exposure from gold hedging, Bema Gold Corporation has an advantageous hedge position and remains well within margin limits. Bema's continuing hedging philosophy is to eliminate the downside risk of lower gold prices, primarily through buying out options, while retaining the vast majority of the upside benefit in the event gold prices move higher. To Sept. 30, 1999, while the spot gold prices averaged $273 per ounce for the year to date, Bema realized an average of approximately $376 per ounce of gold produced, yielding a hedging gain of $7.1-million. If gold spot price averages $300 per ounce for the year 2000 and 2001, Bema would realize an average of approximately $330 per ounce of gold produced in 2000 and approximately $320 per ounce of gold produced in 2001. However, in the event that the gold spot price averages $380 per ounce in 2000 and 2001, Bema would realize an average price of approximately $380 per ounce of gold produced in both years. It is important to note that, while Bema has gold price protection for 2000 and 2001 as detailed above, Bema's entire hedge book has locked in less than 10 per cent of its gold reserves based on current gold prices. WARNING: The company relies upon litigation protection for "forward-looking" statements. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com