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

To: goldsheet who wrote (1359)	6/11/2001 3:58:54 PM
From: russwinter	Read Replies (2) \| Respond to of 4051

Actually I'll revise that to a still too high 440% hedged, cause I'm going to give them the increased Buly production or 3.8 million annualized. The long dates of their hedges are a special red flag. My hedge book calc: 16.1 spot deferred 2.7 Lt call write 0.7 St call write= total 19.5 minus 2.8 St calls in 2001= net hedge 16.7/3.8= 440% I'm not completely sure how their 1.05 million oz mini-max contract works, but it looks like a straddle of some type. Can't tell if it's a bull or bear though. I'll call it neutral?

To: goldsheet who wrote (1359)	6/11/2001 5:02:31 PM
From: marcos	Read Replies (2) \| Respond to of 4051

I just could not understand Barrick's hedging ... while not that great at maths i think i have average intelligence, and gave it serious time and effort ... couldn't wrap my brain around the whole picture ... plus they tell you straight out that they will not reveal the terms of all contracts [this was over a year ago] ... so i blew it out ... after being a long-term holder, had to overcome considerable brand loyalty to do so ... the only major that interests me now is fn.to But you make good points about hedging - it's quite variable, both in kind and in degree ... and the banks require it for any debt facility now, so good luck trying to build a mine without any ... still, the less of it the better, generally speaking, and therein lies the beauty of juniors with proven reserves and no debt.