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Gold/Mining/Energy : DROOY Durban Deep- Best S. African Mine -- Ignore unavailable to you. Want to Upgrade?

To: baystock who wrote (274)	10/8/1999 11:29:00 AM
From: Jerry Rush	Read Replies (1) \| Respond to of 851

Thanks Ram. Appreciate your contribution. Your last info doesn't seem to quite compare with the letter from the company, imo. Maryna says, "1.5 million oz. is 25% of production." And although that is her "projected" numbers, your last post suggests 700,000 oz annual production. So I would call that 50%, or 2 yrs. production that is hedged. Also says,"The large unhedged portion of DRD's production is open to participate with the spot gold price." Not sure I agree with that either. It seems that til June, 2000, they have 82% of production hedged at an average of little over $300. For 2001, they have 80% hedged at about $319. 2002, 20% at probably about $320. Disclaimer: I didn't really run the math on the prices mentioned above, they were quick 'in-the-head' estimates. I like the fact we can expect 20% margins for next two years, but sure don't like only 20% of production participating in higher gold prices. Jerry