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

To: nickel61 who wrote (2658)	5/13/2002 2:51:23 PM
From: goldsheet	Read Replies (1) \| Respond to of 3558

> other heavily hedged producers Could you give a number on this, so I know what you mean by "heavily" If you look at the Australian producers, you might find numbers up to 50% of reserves. Normandy had about that when Newmont bought them, and as a result Newmont now has about 11% of reserves hedged. I have seen several small Australian producers required to sell forward up to 70% of their reserves by their banks to finance their projects. It's not pretty, but if the project has a cash cost near $150 and the bank forces you to sell 70% at $330 (or so), you are still going to make money. Personally, I would call 0-10% of reserves light hedging 10-20% moderate 20%+ heavy I figure the industry average is about 15% of reserves hedged.