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

To: Enigma who wrote (2454)	5/2/2002 9:25:26 AM
From: nickel61	Read Replies (1) \| Respond to of 3558

And the moon might really be made of green cheese. " Globe says Barrick's profitable hedging days wane" Barrick Gold Corp ABX Shares issued 537,813,627 May 1 close $32.14 Thu 2 May 2002 In the News The Globe and Mail reports in its Thursday, May 2, edition that Barrick Gold saw its profit for the first quarter of 2002 fall almost 50 per cent from the same period a year earlier as its ability to make money from its hedge-trading activities diminishes. The Globe's Allan Robinson writes that profit for the three months ended March 31 was $46-million or nine cents a share, compared with a profit of $87-million or 16 cents a year earlier (all figures U.S.). Last year's figure included a $52-million non-hedge derivative gain. Barrick's revenue was $478-million, compared with $499-million last year, as a result of lower production and prices on its gold sales. The fair value of Barrick's hedge position has declined to a loss of $127-million, down from a surplus of $356-million at the end of 2001, says Pollitt & Co. analyst Douglas Pollitt. "In the past, the company booked gains from its hedge book into earnings," says Mr. Pollitt. "Now they are losing money on the books." Barrick says that $483-million swing in the off-balance-sheet item is mainly a result of the $23 rise in the price of gold, and it represents 22 per cent of the gold reserves, which are hedged. (c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com

To: Enigma who wrote (2454)	5/2/2002 9:50:44 AM
From: nickel61	Read Replies (1) \| Respond to of 3558

What do you find uncredible? The fact that Barrick might consider trying to take over AngloGold or that they would send forty analysts to South Africa to work on the process if they were going to try a take over. The real issue is rather if AngloGold is going to try and fight off an unfriendly takeover from Barrick would they then try and increase their share price by taking advantage of their ability to close their hedges and therefore put upward pressure on the gold price and make their stock price rise to a level where Barrick is less of a threat...Seems obvious to me as well. What confuses you? You don't think Barrick would ever try and take over AngloGold or you can't believe that AngloGold would be smart enough to fight back it they thought an unfriendly takeover was likly? Time to declare yourself Enigma..are you a thinking man or not?