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To: Cactus Jack who wrote (185193)	8/1/2002 7:31:43 AM
From: orkrious	Read Replies (2) \| Respond to of 436258

That's not the end of the world for DROOY. It looks like that'll reduce their profits by 15% for three years (at last Q's gold prices). I'd rather they not have the problem, but I'm more concerned with the political problems. With any luck, the politicians will see that the law has the potential of drying up investment in SA and they will amend it.

To: Cactus Jack who wrote (185193)	8/1/2002 8:42:47 AM
From: yard_man	Read Replies (1) \| Respond to of 436258

they may have been forced into that by the banks -- not fun, but many commdity producers for which energy is a large cost, enter into such agreements to limit their risk and forgo a slice of profits -- it simply gets them a lower price on the downside and a cap on the fixed part of the bill. For the electricity supplier it gives some participation in the upside of the biz We have a similar agreement with an Aluminum smelter ... a loser for us at current prices. Using the term derivative is just trying to blow the thing out of proportion and let somebody purchase the shares on the cheap