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

To: long-gone who wrote (44506)	11/3/1999 8:01:00 AM
From: tyc:>	Read Replies (1) \| Respond to of 116762

As most mining firms are cash starved, how will they be able to raise enough cast to ever buy back their shorts? How did cambior buy back 1.2MM ounces of hedge ? When the forward sale is made, the proceeds of the SHORT SALE are placed on deposit to earn interest until the FORWARD date. It is important to realise that the forward price is simply the SPOT price plus interest (less the gold lease rate). If the hedge is closed this cash on deposit is available. Just make sure that gold is not too high when you make the decision to close it. Cambior waited too long and it cost them (what was it ?) $30,000,000 (I believe. IF the forward price is just the spot price plus interest, IS a forward sales a good deal when DEMAND exceeds SUPPLY ? I am a neophyte.... I know very little... These are just my opinions.