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

To: IngotWeTrust who wrote (48467)	2/7/2000 7:11:00 PM
From: Enigma	Read Replies (2) \| Respond to of 116758

"highgrade to reduce costs per oz while they are at it?" Have you ever seen a large open pit operation - well let's be charitable and assume you've seen a picture of one at least - explain then how you higrade it? Perhaps you pretend it's new and start all over again? Now I'll sit back and wait for all the usual expletives - or expletives deleted - or, hope against hope, that you might give an explicit (as opposed to expletive) answer to the question?

To: IngotWeTrust who wrote (48467)	2/7/2000 7:34:00 PM
From: goldsheet	Read Replies (1) \| Respond to of 116758

> And those who say it is impossible for ABX or anyone else to "high grade" an open pit/heap leaching gold operation haven't seen their head in a long time...because it is so far up their a&&, it's too hard for them to see anything!!! Almost guilty. I didn't say it was impossible, but it isn't as easy as doing it in an undeground vein. With the volume of truck loads a large pit runs daily, who has the time to make major changes in the mining plan. The ore grade numbers in the Barrick, Placer, and Newmont reports show no indication that open pit highgrading is being done. > Sure hope it wasn't any GPM friends of mine that made that dumb statement!<ggg> Nope, my friends don't speak to me like that, not to mention they have the courtesy to slap me on the butt so I have time to remove my head so I can hear better ;)

To: IngotWeTrust who wrote (48467)	2/7/2000 7:34:00 PM
From: lorne	Respond to of 116758

FOCUS-Gold attracts new money as miners cut hedges Reuters Story - February 07, 2000 12:24 " Dealers said the gold market drew interest from other financial investors, with market players dipping into gold from the bond and equities markets, unlike during last October's rally when most of the buying was a result of short-covering from producers wanting to cover their hedges. " " Speculation that troubled Ghanaian mining group Ashanti Goldfields Co Ltd was seeking to reduce its hedge position despite securing a further rollover until February 17 to pay for derivative contracts also helped sentiment. Some analysts said Ashanti had stepped up efforts to cut its hedges. "They are trying to sort their hedge book out and are working to reduce the size of the problem. They've been in the market, working with Goldman Sachs to sort the whole book out," said one mining industry analyst. " Full story >>> hoovershbn.newsalert.com

To: IngotWeTrust who wrote (48467)	2/8/2000 3:28:00 PM
From: russet	Read Replies (3) \| Respond to of 116758

Yo'Russet...just what is it that ABX said today that makes you so certain ABX is now acquiring naked long gold calls? They said this,... Barrick expects 2000 to be a strong year for both earnings and cash flow with continued outstanding performance from its premium gold sales program. "We remain committed to our strategy of delivering strong, predictable earnings through our unique hedge program," said Jamie Sokalsky, senior vice-president and chief financial officer. "With some key changes to enhance our leverage to rising gold prices, we will now be able to provide earlier participation in rallies while maintaining the downside protection." Barrick has 84 per cent of its 59.3 million ounces in gold reserves leveraged to the price of gold and remains assured of downside protection on 13.6 million ounces sold forward at a minimum average price of $360 (U.S.) per ounce. The company's premium gold sales program provides a floor of $360 (U.S.) per ounce for 100 per cent of production in 2000 and 2001, and approximately 25 per cent for subsequent years. The total amount of ounces committed in the program has been reduced from 18.8 million ounces at the end of the third quarter to a net 9.8 million ounces at year-end 1999. Barrick has already enhanced its leverage to the gold price by implementing three key measures: Barrick reduced its long-term call options sold from 4.0 million ounces at the end of the third quarter, to 2.7 million ounces at year end. The company spread out the delivery schedule of its spot-deferred contracts over more years, assuring a minimum price of $360 (U.S.) throughout. Barrick purchased 6.8 million ounces of call options to provide earlier participation and make more money in gold price rallies. The purchased call options, an important new dimension, cover 100 per cent of production from March 1, 2000, through 2001. They give Barrick the right, but not the obligation, to purchase gold at $319 (U.S.) in 2000 and $335 (U.S.) in 2001. The calls allow Barrick to realize its floor price of $360 (U.S.) plus any value over the call strike prices of $319 (U.S.) in 2000 and $335 (U.S.) in 2001. "Our near-term earnings and cash flow will benefit immediately from these key adjustments during rising gold prices. Our objective remains the same: to place a floor on our revenues and also more fully participate in a rising gold price environment," said Mr. Sokalsky. Barrick is the most valued gold producer in terms of market capitalization and has the strongest financial position in the industry with the only A-rated balance sheet. As far as Barrick being a lousy long term investment,...take a look at this http://quote.yahoo.com/q?s=ABX&d=mys It shows ABX performance since inception about 15 years ago has beat the S&P 500 over that time. Plot this performance against the POG, or the gold index, or another gold company that is the same size as ABX today, and I think ABX will prove to be a relatively good investment. Note the key word,...relative. ABX can also be used effectively as a short term trader to glean the uptrend spurts in the POG as Bob Johnson does. It reacts with good jumps every time the POG goes up. Bob has done very well with it, up 80% in a few years, don't you think? http://www.siliconinvestor.com/readmsg.aspx?msgid=12800340 > Re ABX: You may be holding the wrong stock Bob. You are probably right, I have been trading only ABX since November 1998 and I am up a little over 80%. I could only imagine if I was in the right stocks or actually knew what I was doing how much better my dismal performance will be ;)