Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: jimcav who wrote (30037)	10/20/2000 10:12:16 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

sorry...i was already gone when you posted this...anyway, HM's hedge position is minimal,although its hedging policy allows for up to 30% of its production to be hedged. for example, it has sold forward 85K oz. for 2000, 10k oz. for 2001, 10 k oz. for 2002. altogether its forward sales spread over 10 years amount to 514K oz. however, it produces over 2m. oz. annually, so this is really very little. it also has puts for 190k oz., and has a combination of written and purchased calls that basically offset each other (which makes one wonder why they did them at all...). in Australia it has a further 100k oz. sold forward spread over 10 years and puts on 240K oz. all in all the amounts are immaterial considering HM's production volumes and reserves. note: some of these numbers may have changed a little in the meantime, this is the latest stuff officially available.

To: jimcav who wrote (30037)	10/20/2000 11:04:21 AM
From: Archie Meeties	Respond to of 436258

as of last q. Expected Maturity or Transaction Date ----------------------------------------------------------------------- There- Total or 2000 2001 2002 2003 2004 after Average -------- -------- -------- -------- -------- ---------- ---------- US$ denominated contracts: -------------------------- Forward sales contracts: Ounces (thousands) 42.5 10.0 10.0 - - 649.2 711.7 Average price ($ per oz.) $ 434 $ 400 $ 403 - - $ 415 $ 416 Put options owned: Ounces (thousands) 70.0 80.0 - - - - 150.0 Average price ($ per oz.) $ 294 $ 253 - - - - $ 272 Call options written: Ounces (thousands) 55.0 80.0 - - - - 135.0 Average price ($ per oz.) $ 291 $ 253 - - - - $ 268 Call options purchased: Ounces (thousands) 40.0 80.0 - - - - 120.0 Average price ($ per oz.) $ 268 $ 268 - - - - $ 268 Australian$ denominated contracts: /(1)/ ----------------------------------------- Forward sales contracts: Ounces (thousands) - - 144.8 144.8 108.8 26.0 424.4 Average price (US$ per oz.) $ - - $ 326 $ 338 $ 348 $ 314 $ 335 Put options owned: Ounces (thousands) 60.0 120.0 - - - - 180.0 Average price (US$ per oz.) $ 310 $ 319 - - - - $ 316 /(1)/ Expressed in US dollars at an exchange rate of A$ = US$ 0.5967