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

To: Exsrch who wrote (1944)1/16/2000 8:57:00 PM
From: Zardoz  Read Replies (2) | Respond to of 3558
 
It is possible to make a special dividend to ABX shareholders, where they separate the ABX hedging program away from the ABX mining & production. Then offer such dividend. All they would need due is sign some formal agreement that some portion of gold going forward be sold to ABX-hedging at specific intervals, based on average or dialy close prices for spot; X-numbers of years going forward. Once they are separate entities, the actions of the two would diverge over the coming years. This although may be worse for the ABX production company, and better for the ABX hedging company if gold remains range bound. There is no reason that all of production would need to be sold to ABX-hedge. In deed in could well be good for ABX hedge to buy directly from LBMA all amounts of hedged gold directly. The present HEDGE is a large portion of ABX.

Hutch



To: Exsrch who wrote (1944)1/16/2000 10:09:00 PM
From: Claude Cormier  Read Replies (1) | Respond to of 3558
 
Exsrch,

A contract is between two parties. Witha a new company in the picture (ABX hedging), these would have to be renegotiate and I doubt very much that the other parties in the derivatives entered by ABX will accept that their contracts be transfer to a new company without the accompanying collateral.


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