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

To: goldsheet who wrote (324)	6/8/2000 1:03:00 AM
From: goldsheet	Read Replies (1) \| Respond to of 4051

Delta Gold has 1.9Moz hedged, about 50% put options Annual production runs 600,000 ounces, increasing to 800,000 following acquisition of Ross Mining NL Goldfields has 2.278moz hedged, about 60% put options Annual production runs about 450,000 ounces Check March quarterlies (PDF) at their websites. This research is starting to change my opinion of Australian miners. Buying put options is probably the safest way to hedge, if you are going to do it.

To: goldsheet who wrote (324)	6/8/2000 9:22:00 AM
From: russwinter	Read Replies (1) \| Respond to of 4051

For the gold bull (and why else would you buy), these Aussies have no appeal at all. Most look like candidates for the trash heap. No wonder investors shun them. They are all high cost producers and have virtually nil call potential on POG. The good news is that the long puts could be sold for cash. If they did that, the whole equation would be dramatically altered. Newcrest: Problem is the deeply in the money strike price of the long puts. Quantity sold is about six years production. 4,310,000 oz puts @ 347 575,000 oz puts @ 470 1,250,000 oz puts @ 423 Delta: Maybe a little light at the end of the tunnel? Well, not really. Have hedged (capped) about three years production. 856,000 oz forward sales @ 315 1,070,000 oz puts @ 326 Son of Gwalia: Forget it! Deep, in the money puts on six years production. 2,812,000 oz puts @ 362 Goldfields: Have hedged about two years production, but strike prices leave some room to participate in a rally. 355,000 oz puts @ 294, but about a years production locked out at low prices: 257,000 forwards @ 290, 183,000 calls (don't indicate long or short?) @ 253 I think we have gleaned over the dogs. Perhaps the focus should shift to the other business model: Unhedged producers with reasonable cost structures?