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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: ForYourEyesOnly who wrote (1424)	10/19/1999 11:29:00 AM
From: Investor-ex!	Read Replies (3) \| Respond to of 3558

THC, Gold in the ground IS both equivalent and more than sufficient to pay back the loans AS THEY COME DUE. Again, these agreements are not futures contracts. There are no "losses" on the forward sales, only opportunity losses had all the production been totally unhedged. Will the counterparties sit back and relax knowing that "they'll get it all out of the ground in 4 years" -- yes, as far as Barrick is concerned, that's THE TERMS OF THEIR CONTRACTS. Time may prove me wrong, but for now, I believe Barrick is neither an Ashanti nor a Cambior. Their hedging is materially different, their production and reserves profile is materially different, their level of hedging (25% of total current reserves and ~30% of annual production) is materially different, and their management and governance is materially different.