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To: Moominoid who wrote (124635)	9/21/2001 1:54:38 PM
From: pater tenebrarum	Respond to of 436258

yep...Pasminco holds a HUGE silver hedge position...i can't give you the exact figure now, but it's a big percentage of annual global production. btw., nearly 50% of the short position in COMEX silver appears to be held by a single firm, i.e., we're talking something like 16,000 contracts times 5,000 oz. each. all these crazy positions invite disaster. as i've said before, Australian gold producers are collectively short about 2000 tons of gold, and there isn't a SINGLE profitable hedge book there now. the average prices of their hedges are between $420 - 450 (Ozzie pesos) per oz., and the price is now at $600 per oz. in Ozzie pesos, some have sold more short than they actually possess in proven reserves. one has already bitten the dust (Centaur). another big gold rally leg, and there will be more ASL type catastrophes in the industry. Goldfields and Harmony can then wade in and pick up the pieces.