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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (33483)	5/17/2000 2:56:00 PM
From: pater tenebrarum	Respond to of 42523

<<"This very hedging, after a decade of proven performance, has come under a serious cloud," said Mr. Munk>> he can say that again. <<"The only risk [a gold producer] takes is if it fails to deliver gold. A company like Barrick has for 15 years, day in and day out, week in and week out, month in and month out, year in and year out, never missed a target.">> THAT's propaganda. it is NOT the only risk as this twit here proclaims. if it were, ASL, Cambior, etc. wouldn't be bankrupt. <<"No one will be able to get a higher gold price than Barrick under any scenario," said Mr. Munk following the meeting. >> that's utter bullsh*t. if they have sold forward at $360/oz., EVERYBODY who hasn't done so will get more for their gold if the price rises above $360. that doesn't take into account that the paper losses on ABX's hedge book would by that time have eaten up a decade worth of profits. so this Munk dude is one big BS spouting nitwit. like the Goldfields chairman said: "it doesn't make sense to sell a product forward at prices below replacement costs". therefore, hedging at current prices is a deadly mistake.