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

To: Ken Benes who wrote (48398)	2/7/2000 3:35:00 PM
From: GST	Respond to of 116791

ABX CEO to appear on 'sqwak box' in the am.

To: Ken Benes who wrote (48398)	2/7/2000 3:47:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 116791

Wonder if a class action lawsuit by ABX shareholders makes sense. Seems clear ABX maangement is not acting in the best interests of its stockholders.

To: Ken Benes who wrote (48398)	2/7/2000 3:49:00 PM
From: Alex	Read Replies (1) \| Respond to of 116791

Barrick hedge news topples gold from new peaks Reuters Story - February 07, 2000 15:01 Copyright 2000 Reuters Limited. All rights reserved. By Alden Bentley NEW YORK, Feb 7 (Reuters) - News that Canada's Barrick Gold Corp. will stick with a reduced gold hedge program sent gold prices into reverse on Monday, after the metal surged to four-month highs amid hedge cutbacks from other big miners. Gold futures seesawed then fell after Barrick, North America's second-largest gold miner, said it was committed to its hedging program despite having halved the size of its hedge book to 9.8 million ounces at the end of 1999 from the third quarter. "I guess the market doesn't know quite what to make of the Barrick announcement," said Leonard Kaplan, chief trader at LFG Bullion Services. "At first look it's not as positive as the market would have hoped." The market had expected Barrick to forswear hedging and move away from aggressive forward sales of gold, along with fellow Canadian miner Placer Dome Inc and South Africa's Anglo Gold Ltd . AT 1355 EST, gold for April delivery on the COMEX division of the New York Mercantile Exchange was down $8.50, some three percent, at $306.60 an ounce and well off from Monday's overseas high of $326.90. In overnight electronic trade, April gold ran to its highest levels since early October. Prices at that time were at two-year peaks following the September 26 agreement by European central banks to limit gold sales for five years. Spot bullion was last quoted at $302.00/5.00, compared to London's late fix at $312.70 an ounce. In a widely anticipated press release Monday afternoon, Barrick said it reduced its hedge portfolio from 18.8 million ounces in the third quarter. Barrick underscored its bullish outlook on the gold market and unveiled an aggressive strategy to increase output to 5 million ounces in 2003 from 3.7 million last year. Gold futures and bullion prices surged over $300 an ounce on Friday after Placer Dome said it had suspended its hedging program in expectation of improving gold market sentiment. Gains were extended early Monday after AngloGold, the world's largest gold mining company, said it had been lightening its hedge book during the past four months and would continue to do so. Some producers use forwared sales and options programs to lock in prices for future mine output. The strategies worked well when bullion was headed toward it's 20-year low of $251.70 last August. But these hedge positions caused devasting losses for some miners and speculators when prices soared last fall. Dealers said the gold market drew capital from other asset markets, with investors moving into bullion from the volatile stock and bond markets, the recent gyrations of which sparked rumors of losses among some finanical firms. This new buying contrasts last October's rally, when most of the activity was a result of short covering from producers wanting to cover their hedges. At midafternoon the Dow Jones Industrial stock average was down 73 points at 10,891. The 30-year treasury bond was down 19/32 at 97-13/32 with a yield of 6.32 percent. "I really think it's very premature at this point to say this is the advent of a new super bull market in gold," said William O'Neill, director of futures research at Merrill Lynch. "The Placer announcement obviously started things off and that precipitated other concerns and talk about the bond market." -------------------------------------------------------------------------------- % hoovershbn.newsalert.com