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

To: tyc:> who wrote (2602)	5/9/2002 11:33:02 PM
From: russet	Read Replies (1) \| Respond to of 3558

I have said that, they have said that,...you for some reason can't understand English. And if they sold some gold 6 years ago at spot,...they might have got $400 dollars per oz for it,... guess what, that's more than you can get right now,...or do you not think so. Then they invested the proceeds and got even more over the last 6 years,...probably the notional value of that oz of gold is worth over $500 right now. Get it now!! They dig that oz of gold up now, present it to the central bank for $310 and they get more than the unhedged gold company for that oz. Writing (selling) covered calls is a recommended procedure in a sideways to weak market,...not a strong one because you will be exercised when the price increases. Your assumption that it is a recommended procedure in a strong market is wrong. They did not say they were reducing their leasing hedge, just that they weren't increasing it. They did say they are reducing their writing of calls, because this activity is stupid in an increasing POG environment. It's clear that the antagonists on this thread are stupid and ignorant of the facts. You come here with a flood of bullchit and repeat it over and over, hoping that the repetition somehow turns it into fact. It does the opposite for me. I know who not to listen to. Read this,....it's pretty simple, for simple minded folks,... Barrick Gold Corp ABX Shares issued 537,813,627 May 8 close $32.75 Thu 9 May 2002 In the News The Globe and Mail reports in its Thursday, May 9, edition that Barrick Gold says it plans to simplify its gold hedging strategy and make it more conservative. The Globe's Allan Robinson writes that Barrick says it will no longer invest cash from the forward sale of gold in a corporate bond portfolio (not that this is all they invest in you dumb chits), but will instead invest it with major financial institutions at a slightly lower rate of interest. The hedge portfolio is currently worth $5.5-billion of which about $758-million is in fixed-income corporate bonds (is that the whole portfolio you dumb chits) (all figures U.S.). Barrick plans to reduce its call option position by at least 50 per cent or three million ounces by the end of the year. Its spot deferred hedge position of 18 million ounces or 22 per cent of reserves will stay unchanged. Since 1996, the hedge program has generated $1.7-billion in additional revenue above the spot price of gold. Barrick says it expects to sell half of its gold production at the spot price and half at its hedge price of $365 an ounce. Gold traded Wednesday at $308.20, down $3.40. ?Every $25 increase in the average spot gold price will increase Barrick's earnings by about $70-million or 13 cents a share. Not what can be more simple for the idiots on this thread, but watch,...will any of you simpletons get it. Barrick reduced their writing of call options. Barrick has made 1.6 Billion more hedging their gold since 1996 than a similar unhedged gold producer for the same amount,...that's a lot of capex for new mines. Every $25 increase in the average spot gold price will increase Barrick's earnings by about $70-million or 13 cents a share. Gold is currently trading at about $310, but Barrick is averaging $365 per oz on their hedged gold. Selling at spot is pulling their average down. Now what have you found out about NGX's hedges, and how about their parent company Noranda. You love NGX,...so spill the beans on their hedge program. Do some work and read the financial statements and go post it on the NGX thread.