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

To: Enigma who wrote (56056)	7/11/2000 7:15:26 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 116818

sure...and the Financial Mail of South Africa recently reported the every single SA hedge book save that of Anglo is under water. so what was financially prudent about that? you still don't realize that in a cyclical industry like gold mining, you go with the flow...you make money in upswings, you lose some in downturns. you try to make more than you lose and pay as much as possible out to shareholders. but to engage in a practice that suppresses the price of your product, and robs you of any upside participation to boot, and locking in prices below the replacement costs for your product is plain and simple nonsense, or rather financial suicide.

To: Enigma who wrote (56056)	7/11/2000 9:32:13 PM
From: long-gone	Read Replies (1) \| Respond to of 116818

<<I don't buy that argument - one BTW which is constantly used on this thread. A company wants to borrow money - the bank says 'what collateral can you give, can we secure your mine?' The company 'no'. The banker then says 'well then, we'd like you to hedge enough future production to secure the cash flow to repay the loan'>> You know good & well (you were about in the days of the origional post) Standard & Poors downgraded every producer which did not hedge! The bankers are behind the bulk of the hedging! This is why I'm not part of the "anti-ABX" camp, they too have litle choice.