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To: Snowshoe who wrote (22908)	8/20/2002 2:32:44 PM
From: smolejv@gmx.net	Respond to of 74559

not exactly on target re subject, but close: mips1.net >>He outlined the company was now working to make the hedge program simpler going forward, with a target of reducing its variable price sales contracts and call options by 4 million ounces by the end of this year. As at 30 June Barrick's spot deferred position stood at 17.9 million ounces, representing about 22 per cent of reserves deliverable over the next 15 years at an average price of US$344/oz. For the balance of 2002, 50 per cent of Barrick's anticipated production would be sold at an average US$365/oz and the balance at the prevailing spot prices.<<

To: Snowshoe who wrote (22908)	8/20/2002 6:17:27 PM
From: TobagoJack	Respond to of 74559

Good morning Snowshoe, <<Come on Jay, what is this "seems to have" crap? Is it true or isn't it? Why do these guys keep spouting these flaky insinuations without giving any definite information?>> ... because ABX had never revealed the details of their tailor-made hedge contract (no central clearing, no standard terms, no offset feature, no tallying, 'no margin call', no transparency, and thus no definite information), and when the gold price started to rise and hedge contracts started to go bad in Australia and SAfrica, ABX announced 'we are ok, because we can delay for upto 15 years', without having said what percentage of their hedge has this feature. They still did not reveal the details of their hedge contract, except a portion of their cashflow was clopped by the banks, but 'not because of margin call', according to the company. If ABX is telling the whole truth, then ABX's counter-parties will be in greater trouble as gold price rises, because ABX will sell into the spot market as opposed to deliver down on their hedgebook, and ABX's counterparties may not have priced their obligation correctly when made. If ABX is telling half-truth, then ... what happens after 15 years? what about 5 years until 15 years, etc, and what happens to their counter-parties (all five of them)? If ABX is lying, then ... We simply do not know as yet, and so let's just watch. I keep remembering that (a) gold is money, (b) cannot be printed for very long, (c) ABX is a bank, (d) ABX is big and unregulated. Enron was also big, until it got small. I would not characterize Faber as flaky, but perhaps as eccentric. I had met the man, he seems brilliant, and his investment track record is good. Chugs, Jay