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

To: Zardoz who wrote (1947)	1/17/2000 7:50:00 AM
From: nickel61	Read Replies (1) \| Respond to of 3558

There is a little thing called collateral that would be missing from one of the two parties. Plus who would stand behind the hedging sub if the gold price went against them. Their counter parties would never allow their position to be under cut like that. I thought you were in the hedging business?

To: Zardoz who wrote (1947)	1/17/2000 1:06:00 PM
From: Exsrch	Read Replies (1) \| Respond to of 3558

Hutch, I see the benefits of your suggestions; however, I am not sure a special dividend is possible. The money would have to come from the balance sheet. The hedge fund exists only as a off balance sheet item. - Can you dividend what is not on the balance sheet? - Or put another way, can you dividend money that is really not yours? (Because of the hedge you only have it for the duration of the lease contract) Other problems would also have to be overcome. - How do you make the dividend tax free? (especially in Canada). You do have an interesting point. It could be done in other ways; however, I can't see the practicality of it. Unless I am missing something. Also, ABX hedge department is all of 3 people. With support people and office space ABX hedging would be a large hedge fund with the fewest staff. Hope you find the comments collaborative. Let me know what you think. Cheers, Exsrch