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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: nickel61 who wrote (2336)	4/3/2002 4:56:16 PM
From: nickel61	Read Replies (1) \| Respond to of 3558

Companies reduce hedge positions Source: Mining Engineering Publication date: 2002-03-01 Arrival time: 2002-04-03 Gold's return as an investment choice has been spurred by the announcements by several large mining companies that they will reduce their hedge positions. Potential investors were pleased to hear that. And some analysts believe that will help gold maintain its new- found strength. Newmont Mining is a traditional nonhedger. In February, Newmont said that it would eliminate all of its hedge book once it completes its acquisition of Normandy Mining. That would amount to about 218 t (7 million oz). In addition, Newmont closed out Battle Mountain Gold's 8.5 t (275,000 oz) hedge book. Meanwhile, Normandy announced that it had reduced its hedge book by 11.6% to 308 t (9.9 million oz). In January 2002, AngloGold said it had reduced its hedge position by 20%, to 388.8 t (12.5 million oz). The company later announced that it would further reduce its hedge book by another 20% to about 311 t (10 million oz). South Africa's Goldfields plans to eliminate the 13 t (420,000 oz) of hedged gold it acquired when it increased its ownership in Abosso Goldfields in Ghana. And Newcrest Mining, of Australia, cut its hedge position by 6 t (193,000 oz). Late last year, South Africa's Roodepoort Deep announced that it would change its strategy to becoming an unhedged gold producer. Copyright Society for Mining, Metallurgy, and Exploration, Inc. Mar 2002 Publication date: 2002-03-01 © 2002, YellowBrix, Inc. Company MultiLinkTM Find out more about these companies. Newmont Mining Corporation Holding Company Normandy MiningADS

To: nickel61 who wrote (2336)	4/3/2002 5:20:54 PM
From: Enigma	Read Replies (2) \| Respond to of 3558

I get it but you have to be a believer. As Bob Johnson (BTW where is Bob?) used to point out there is an awful lot of gold due to come on stream and there is a lot more on top of that mothballed or ready to be developed. $600 is IMO a pipe dream, unless we have a huge financial crisis and panic buying. So if I was running a mining company with a hedge book I'd unwind very prudently.

To: nickel61 who wrote (2336)	4/3/2002 5:50:03 PM
From: tyc:>	Read Replies (2) \| Respond to of 3558

Perhaps it is YOU who doesn't get it. Why should Barrick buy back its hedges ? It seems that you delude yourself into believing that there will be some dire consequences if they do not do so. The only consequence is that it will receive for its future hedged production the pre-arranged price, instead of the spot price which might be considerably higher. You talk about co-party risk. I know nothing about Barrick's dealings and it is quite clear that you don't either. Logic tells me however, that in the remote possibility of a failure of the co-party to a hedge, the hedge would simply collapse. A hedger would have to sell its production on the spot market instead of delivering into the hedge for a price higher than spot.... it would have to be satisfied with the same spot price as the non-hedgers are receiving. So what's the big deal ? What is your agenda ?