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

To: goldsheet who wrote (328)	6/8/2000 11:41:00 AM
From: russwinter	Read Replies (1) \| Respond to of 4051

Question about the unhedged, reasonable cost producers was not limited to Australia. Clearly these Aussies should be watched for a major unwinding of the long puts in particular. The investor response (rerating)might be pretty positive. Agree that they may be a target for a company willing to unwind the position to free up the cash committed, and create a call on the reserves. In fact that seems like a great strategy and might signal a sea change in gold production philosophy Down Under. But, until then they look like a mess, certainly poorly positioned for a POG rally. Seperately, I wonder if the counterparties could write out the check if several of these Aussies showed up at the window at the same time?

To: goldsheet who wrote (328)	6/14/2000 6:35:00 PM
From: russwinter	Read Replies (1) \| Respond to of 4051

Perhaps what we've been talking about regards Aussies? Wonder if they are closing out the long puts? Market Report 6/14/00): Gold rebounded strongly this morning led by physical buying and short covering in Asia. Reuters reports that a "significant" mining company, possibly Australian, might be closing out its hedge positions. Similar market action in Asia yesterday drove the gold price almost $7 higher before the rally was stopped in New York. One source reported Goldman Sachs as the rally stopper. There has been no verification at this time that a major buy-back is in progress or that Goldman Sachs is trying to cap the price, but with gold up another $1.70 in the early going and the obvious attempt to check the rally in New York yesterday, we would have to say that something worth noting is in the works. As suggested here yesterday, the merger between two strong anti-hedging mining concerns -- Gold Fields and Franco Nevada -- into one powerful entity could be having an direct effect on other mining companies. If corporate managers have one major concern, it is the value of the stock in the company they represent. If the profile of the attractive mining company to mutual fund managers becomes one that is unhedged, then there could be a mad scramble to see who unwinds their hedgebook first. It seems that someone may have gotten the message early on. Later today, the CPI numbers will be released.