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

To: russwinter who wrote (956)	5/9/2001 2:41:47 PM
From: baystock	Read Replies (1) \| Respond to of 4051

Russ, I think it was you who warned months ago about Centaur's hedges: ``The gold price in the spot market was up $3.00. There's been some short-covering going on and probably some buying above some technical levels,'' said Victor Flores, a gold analyst at HSBC Securities, in Toronto. ``So $3.00 on the gold price is enough to get people fired up and these stocks to move.'' Chad Williams, a mining analyst at TD-Newcrest in Toronto said the jump was also sparked by overnight news of the impending liquidation of Centaur Mining & Exploration Ltd. (Australia:CTR.AX - news), an Australian-based gold miner with a large hedging position. Centaur's creditors will decide next week whether the company, which collapsed with debts of $664 million, should be put into liquidation. The company, once valued at more than C$1 billion, was placed in the hands of a liquidator in March. Williams said the price of other gold mining companies rose as there was speculation that the hedge position of Centaur would be cleared. Hedging, a common practice among larger producers in the gold industry, allows a company to cushion the effect of a falling gold price by selling future production at a fixed price.