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.

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

To: lorne who wrote (63414)	2/6/2001 8:02:58 AM
From: Square_Dealings	Respond to of 116753

AU and HGMCY are in play right now, I'm not sure what is up - maybe a merger/acquistion? We already know Japanese are taking a stake in HGMCY. Reps from AU and HGMCY were the only mining co. reps at the GATA mtg in SA, and the result was the miners union support of GATA. So maybe they are getting ready to shut down the mines in prep for the squeeze. Anyway I think there is a lot of effort in trying to shake people out of mining stocks here for a reason. So far the down days have been on relatively low volume. M.

To: lorne who wrote (63414)	2/6/2001 7:00:39 PM
From: russwinter	Read Replies (2) \| Respond to of 116753

This is an example of the typically bearish spin commentators put on something that has already happened. A glance at AU's year end hedge position reveals that they are already hedged in those years with 16,719,000 oz. in forward contracts and another 3,054,000 oz. in call writes. As 2001 production is estimated to be 7.1 million, (incidentially that's down from 2000's 7.24 million) they will have to increase output to 8.0 million a year, just to keep up with their present delivery requirements, if they wish to hit their stated 50% guidelines. IMO it is more likely that AU will not hedge another ounce for at least a year. In fact I'm skeptical that they can maintain even current output levels without a major merger or purchase. Message 15293915