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

To: nickel61 who wrote (2455)	5/2/2002 9:25:46 AM
From: nickel61	Read Replies (1) \| Respond to of 3558

" 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