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

To: Enigma who wrote (44847)	11/11/1999 9:33:00 AM
From: SwampDogg	Read Replies (1) \| Respond to of 116768

<<however this sort of research is necessary to cut through all the perceptions and misconceptions that are out there.>> The problem with that argument is that the PM markets are based mostly on perceptions. If investors are no longer interested in hedged gold companies than ABX is dead money at best.

To: Enigma who wrote (44847)	11/11/1999 3:56:00 PM
From: Ken Benes	Read Replies (2) \| Respond to of 116768

Cash flow, balance sheet, production, reserves are great for the company, however, if they do not result in a rising share price, what are the benefit for the shareholder. People invest money to realize a profit. While a hedging program may produce desireable benefits for a companies balance sheet, in the end if a companies shares do not appreciate, it is a poor investment. ABX has been a poor investment despite its innovative hedging program. A comparison to other less dynamic producers, indicate no significant advantage for barrick. The recent events hallmarked by a significant and sharp rise in the pog further illustrated the weakness of the large hedgers. They underperformed the group, and exposed the other side of the hedging programs. A sharp and swift rise in the pog can swiftly change a hedging program from an asset to a company threatening liability. Can we finally put the praises of hedging for gold producers to rest. Ken