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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Zardoz who wrote (310)	6/7/2000 12:05:00 PM
From: goldsheet	Read Replies (1) \| Respond to of 4051

> Tell me, have you worked out when in 2001 that a 'numerous' of the PDG and ABX gold hedges expire? I did not know I was assigned that task. ABX would be left with 9 million ounces hedged at the end of 2001. Haven't looked at PDG recently. > PS: I don't fell PDG is over exposed, nor that their amount hedged is excessive, or at risk. I don't either, 15% of reserves is OK with me. I just object to that fact that they jumped on the "we are not goign to hedge" publicity bandwagon then did not do anything.

To: Zardoz who wrote (310)	6/7/2000 12:16:00 PM
From: russwinter	Read Replies (1) \| Respond to of 4051

The good news is they don't throw away the $54. The eroding time value of the option writes and the gradual diminishment over time of the intango of the forward sales, coupled with the generally low price of gold gives these companies the opportunity to monetize at least part of that $54, if they acted now. The fact that these companies aren't actively buying back these positions (and I don't mean match transactions such as call buys) rather than just delivering production puzzles me. So much so that I start believing some of the conspiracy theorists. But, more likely it is that they are poorly advised by their dealers and counterparties (who have a vested interest in the same trade).