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Gold/Mining/Energy : NORTHGATE EXPL (NGX.TO) -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (54)	6/23/2002 11:05:15 AM
From: E. Charters	Read Replies (2) \| Respond to of 158

Tyke, eat a midol. They borrow gold to do one thing, to sell it to finance their operations. It is called hedging as they declare it as such. They repay the loan out of production. They lose on what they could have made by selling the gold naked and taking a profit. They pay back in ounces. Simple enough for you? In other words they are financing at the difference between the present gold price and what they had to sell gold for. This can be 10% 20% or perhaps 100%. Who knows? Most likely it will be around 30%. Cheap. Can't lose money. So you are an expert. So talk to Eric Sprott. Apparently he knows nothing too. But he is leery about Barrick's hedging, and all he does is run the single most successful gold fund in North America. Must be a dummy. LTCM was fully hedged too. And they only needed a one billion dollar bail out. So this thread is a chearleader for people who have the mentioned stocks in the leading post? That is generally where I run into bashers. Same as the other poltroon chearleading threads. Mention one truth about a company, Teryl, Stealth and out come the shareholders. You cannot bash my company. Your sweatsocks are mismatched! So if they don't hedge to get money, why on earth would they hedge? Please explain. I am all ears. EC<:-}