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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (7417)	9/26/2002 10:56:13 AM
From: Jim Willie CB	Read Replies (4) \| Respond to of 89467

between the mine lines on Barrick, realistic sinister view I have often commented on Barrick's hedgebook and the dire threat looming over its financial operations here is what I read between the lines Barrick is very busy now stumbling along as it attempts a transition from a JPMorgo/FedResve tool (shorting gold on futures exchanges throughout 1990's) ... to an actual gold miner (a hilarious concept) since their executives are ALL financial professionals without much of any experience in mining they acquired a few mines to legitimize their front as a miner when they really existed as a hedge firm shorting gold they made far more money shorting gold than they ever will in mining gold !!! as they slowly cover their hedgebook, they are admitting their total incapability of delivering gold into such a vast network of short futures, naked puts, and exotic contracts as they slowly cover their hedgebook, they are seeing a drain of cash, which for a healthy gold miner would go into operations (drilling, smelting, refining, delivering gold)... instead of diverting valuable cash into payments to cover short contracts inside the vast hedgebook Barrick may not be dying suddenly from a sharp rise in gold price, which would lead to a quick acidic end to their balance sheet instead Barrick is seeing its gold mining, legitimate mining operations suffer from lack of cash flow into production, blaming it on price their money is being diverted into paying off hedgebook plain & simple this is to be expected in my May memo on "20 Reasons Why Gold Will Rise" here is reason #20 20. high gold price leads to higher demand, lower supply - demand drops during price declines, becomes nonexistent at lowest prices - as price rises, a worldwide fever develops and gains momentum, lifting demand - supply was enormous at gold’s lowest prices with Central Bank and miner selling - as price rises, hedge sale cashflow declines, money goes to cover forward contracts - ironically, gold mining firms then become buyers on the world markets !!! given their execs are financial whizzes from Wall Street, I would not be suprised if they doctored the financial reports so that hedgebook losses were hidden as decreased price received on delivered gold product these Barrick guys are the scum of the gold industry the curious part is the market reaction, taking down the gold miners but gold metal POG has slipped back to #320 many still erroneously regard Barrick as a leading gold mine firm I dont it is still a hedge firm masquerading as a gold mine firm and having a difficult time making the transition the earnings show it wait until the gold price really moves up I will attend Barrick's funeral written in stone just to piss on their grave / jim