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

To: nickel61 who wrote (1507)	12/6/1999 10:37:00 AM
From: Enigma	Read Replies (1) \| Respond to of 3558

Please demonstrate how Barrick wants the POG to fall - given that only a relatively small percentage of its production is hedged? Producers want the POG to rise - but some like you are looking for plots under every stone. Do your really imagine that the management of this company and others rub their hands on a day like today and say 'wow, the POG has fallen today - great!!' The whole point about hedging is that on a day like today the company rests easy because it knows that it has secured a economic price for it's production, or some of it's production in future years. As for being your foil - I'm simply dumb enough to give you the time of day.

To: nickel61 who wrote (1507)	12/6/1999 11:50:00 AM
From: Zardoz	Read Replies (1) \| Respond to of 3558

Therefore it is important that this additional risk be understood by all shareholders and that management has a responsibility to full and timely disclosure of these positions and the rationale behind them. Well, YES the shareholders should understand what a hedge program is, and what the risks are in a hedged, and non-hedge mining company. But full and timely disclosure is unacceptable, and may actually be counter productive as a hedge fund would then be able to fully hedge and lock in ratios against the companies. And then apply pressure. Consider this: Full disclosure. Why should you be given full disclosure? Should I be able to go to a bank and ask to see ALL mortgages held at the bank, so that I can fully and timely see the effects of risks? Where would it stop? We place people into the position of CEO's to act in the best interest of the company, not for individuals. Barrick has stated many times what they have, and have not done as far as hedges go. They are not similiar to the other two companies you mentioned. The other two companies SPECULATED. I suggest you learn the difference: cob.vt.edu If indeed all they were doing were hedging their future production there would be less to worry about. But the sheer magnitude of ABX's hedge book makes it appear that it is seeking to profit from a decline in the gold price like a hedge fund would seek to do, rather than protect their future cash flows like a prudent producer of gold who is offsetting some of its normal business risk. Not true at all. Hutch.