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: Gary H who wrote (80924)	1/19/2002 5:52:46 PM
From: IngotWeTrust	Read Replies (2) \| Respond to of 116833

While I hear your 2 points, and CERTAINLY agree with you that the Franco component is sweet sweet sweet, I don't think I concur that the Franco deal is how NEM is going to lift the Normandy hedges. That isn't someone one does overnight, nor do they have to. Delivering production is a normal way of closing hedges. Remember, hedging isn't wrong, just the 9 written, naked calls to pay for one naked put is the out of whack "wrong headed" deriv strategy that I object to. As a former wheat farmer, soybean farmer, a cattle-rancher, and now a goldminer both lode as well as recycling goldminer, I firmly believe both in hedging as well as cash-forward contract inorder to achieve maximum return on dollar invested. Doesn't mean I go crazy and get 9:1 naked while I'm using the legit hedging game available at my local commodity brokerage down the street, or in now modern times, as close as my online hedging account. RE: Franco's Management...I may have a slightly different take than you there, as well. For starters, Franco Mgmt kicking out royalty checks is a "no brainer," management wise. I greatly suspect to see Franco Mgmt "reassignment within the new corporate tree" OR their "additional job duties" as assigned by their new bosses. The royalty game is one NEM is already participating in. There maybe a cost savings gleam in NEM's eye by buying out Franco's mgmt team and simply adding on another server and a junior accounting associate to do the grunt work. God help us if they grab one of Anderson's snot-nosed, too young to shave suits to replace Franco's mgmt team however...<g> Any comment?

To: Gary H who wrote (80924)	1/19/2002 8:37:12 PM
From: goldsheet	Read Replies (1) \| Respond to of 116833

> cash NEM wants to pull out the Harmony hedge. NEM is buying Normandy (Australia) not Harmony (South Africa) Also, Normandy hedge is below market price ($A550), so it will cost NEM money to close it out GOLD HEDGING POSITIONS (at 16 January 2002) (Australian Gold Council Standard) '000ozs A$/oz(1) ----------------------------------------------------------------------- NORMANDY WHOLLY-OWNED Forward Sales 2001-02 52 522 2002-03 1,112 518 2003-04 671 543 2004-05 458 550 2005-10 2,172 535 Total 4,465 533 Will cost about $A76M to close ($A17 x 4.465moz)