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

To: russwinter who wrote (447)12/4/2000 11:02:54 AM
From: tyc:>  Read Replies (1) | Respond to of 4051
 
Thanks for your reply. Let me restate my position.

On the basis of that chart, if I were an unhedged aussie gold miner with no US dollar liabilities, I would consider locking in the current US exchange rate by forward selling US dollars. This would be tantamount to forward selling my gold production in terms of the Aussie dollar. I do not understand why this would be imprudent.

From a very brief glance, it seems Centaur's problems are three-fold

1. It sold forward more gold than it is producing.

2. The Aussie dollar fell vis-a-vis the US dollar (but that now appears to be reversing).

3. It doesn't have sufficient US dollar income to support its US dollar denominated debt.



To: russwinter who wrote (447)1/4/2001 10:31:36 AM
From: tyc:>  Read Replies (2) | Respond to of 4051
 
The US dollar declines and, surprisingly, the price of gold declines even in terms of the declining US dollar. Have you and Bob reconsidered your attitude to Aussie miners' hedging their gold production in Aussie dollars ? It doesn't look so dumb now, does it ?


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