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

To: IngotWeTrust who wrote (48307)	2/7/2000 11:55:00 AM
From: long-gone	Respond to of 116764

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To: IngotWeTrust who wrote (48307)	2/8/2000 11:01:00 PM
From: Greg Ford	Respond to of 116764

Thanks for the kind words. All I can remember about the Ashanti situation is that they had a negative mark to market of $570 million when gold was at $325. At $315 the MTM was a negative $450 million. This is based on the interest rate, volatility and forward market existing in October. Clearly volatility and interest rates have increased. As for contango that has also increased. This could mean that their MTM is further out of the money than in October. It appears that the counterparties cannot agree on rolling forward the hedges. Alot probably has to do with the sale of the Geita asset. Ashanti has hedges that extend for a long time (15 years) and thus they may have allocated some of those hedges to Geita. Once the Geita sale is concluded Ashanti should have some cash to pay down its operating loans. But will the bullion banks roll the hedge position. I wonder what they will do if the price is higher? We live in interesting times. Greg