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Gold/Mining/Energy : A to Z Junior Mining Research Site -- Ignore unavailable to you. Want to Upgrade?

To: russet who wrote (251)	6/21/2002 1:28:56 PM
From: tyc:>	Read Replies (2) \| Respond to of 5423

>>because the juniors (like NGX) leases forward and uses the proceeds to fund capex or operations You mentioned NGX because you know I'm interested, right ? Well it serves the purpose also of bringing this subject back on track... Junior Mining Research. IMHO the essential difference between ABX and the juniors (like NGX) is that Barrick has control of the proceeds of hedged (borrowed and sold) gold, while the juniors have no such control. The investment of the proceeds is done by the bullion banks and the junior sees nothing until the hedge is closed.... it cannot use proceeds of the hedge for capex or for operations. NGX was required to hedge a million ounces of gold to guarantee that future cash flow would be adequate to cover its debt servicing needs. It has since arranged equity financing to reduce its debt significantly, so the hedges are largely to be unwound. Frankly I preferred the hedging to the dilution of equity. I think the present weakness in the stock price is caused by a belief that there may be trouble because current hedges exceed immediate production, and the Horne Smelter strike might interfere with cash flow. If our view is correct, that there is lots of gold available, then it is a simple matter that current hedges can be rolled forward. This weakness in the stock price could truly be a buying opportunity.

To: russet who wrote (251)	6/21/2002 9:26:21 PM
From: d:oug	Respond to of 5423

[as the POG rises] money for exploration [will] flood in [for] discovery and recovery [of] 10's of billions of cheap gold oz still in the ground... . russett, . Knowing that there are two sides to a coin, and "Who has the gold rules." with flip side(s) of "It takes money to make money." "Who has money?" [to] invest into your above comments. I have heard that Barrick ABX has a big balance sheet bottom line of huge amounts of cash in the bank(millions?) and if so, if Barrick determined that the price of gold as seened in today's market is going to be short lived as in a few years from today it may have exceeded $350 - $400 but only for a few months and returned towards the $250 - $300 range, then better to hedge today. or If Barrick changes its expectation towards a long strong bull market then they have the cash to do better than others... "[as the POG rises] money for exploration [will] flood in [for] discovery and recovery [of] 10's of billions of cheap gold oz still in the ground..." russett so Seems Barrick can have their cake and eat it to. or Able to wait until the current world situations of nasty stuff either straightens itself out, ot goes down hill quickly. Those with cash can step in very quickly as they need not wait for investors or bank loan approvals. Those holding the rights to unproven dirt in a gold bull that recently stood up and now is walking and maybe beginning to walk fast and just maybe in days or weeks or short months start to run will in my opinion act like a used or new car salesperson, as in rather make a for sure one dollar today than a maybe two dollars tomorrow. If so Barrick having cash could purchase lots and lots of that dirt and not worry about the road to production if the price of gold is seened to explode like $x,000 (aka 4FigAU :o) (meaning) hedged or not good hedges or bad "Who has the cash can Rule(Fate, change the future.) (off topic) From: 4figureau ...OK maybe Dines...but only because of the 6 foot Barbie twin-look-alikes he travels to virtually every gold show with. (G) ok, Anyone have any url to these R-rated Girly pictures :o) dirty semi-old man dougak