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

To: nickel61 who wrote (2690)	5/14/2002 8:13:45 AM
From: tyc:>	Read Replies (1) \| Respond to of 3558

>>whether or not a heavily hedged miner can produce enough gold to deliver on their hedges in a rising gold market. A "rising gold market" has nothing to do with it. Delivering into their hedges means simply repaying the gold that was borrowed. What its price is at the time it is repaid is irrelevant. Does Barrick have enough production ? Of course they do ! If they don't, they will just have to produce more ! That means, dig up more of the portion of their reserves that has the investment returns of a portfolio of bonds !! (Having returned the borrowed gold, they get to keep to bonds).