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

To: nickel61 who wrote (2978)	5/21/2002 6:44:32 PM
From: russet	Respond to of 3558

THE price of gold goes up as it did from 1970 through 1975 and gold in the US dollar price is $1200/ounce and then what does Barrick do? If it is not already bankrupt it is going to have to deliver all of it's production into it's foolish hedges for the next three and three quarters years. If gold goes to $1200 per oz over the next few years, Barrick will sell 80% of their gold each year at spot and eventually get $1200 per oz. They might buy some gold calls to improve their average revenue per oz. This is simple logic both Barrick and I have told you several times but its like talking to a wall of bricks. It's not the spot price, but the average gold price Barrick gets that determines their profitability. If they have to deliver 10% or so at lower prices, it ain't going to affect their average much. Simple math Nuckel. They do not have to deliver all of their production in 3.5 years,...it is not what Barrick says and you have no proof, so either you are wrong, or you claim Barrick is a liar. I think you once again know absolutely nothing about what you are talking about. Barrick is still not Bankrupt, and they are getting $365 per oz right now for their gold because they sold it earlier at higher spots and made some interest on it. Simple math. Why don't you email Barrick all your ASSumptions and assertions and publish the email and the reply so we can all get a good laugh.