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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: nickel61 who wrote (3187)	10/26/2002 10:02:36 AM
From: nickel61	Respond to of 3558

Barrick Sees Its Share Of Total Hedging Market Declining Thursday October 24, 10:49 am ET VANCOUVER -(Dow Jones)- Barrick Gold Corp. expects its 15% to 20% share of the world's estimated 100-million-ounce gold hedging market will drop as the company reduces ounces committed under its hedges, Barrick chief financial officer Jamie Sokalsky said Thursday. On a conference call, Sokalsky said liquidity in the hedging marketplace is down from several years ago, but that reduction isn't affecting Barrick's ability to do business with counterparties. "We still see a reasonably robust market," Sokalsky said, adding that there is less business going through the market in general and the company considers this factor when it does transactions. Barrick is in the hedging market every second day, on average, as it rolls over contracts, he said. The company's forward sales position was 16.9 million ounces at the end of the third quarter, and it plans to cut that position to 12 million ounces by the end of 2003. The company's variable price sales and call option contracts totalled 2.2 million ounces at quarter-end, with a target of 1.5 million ounces. The mark-to-market value of Barrick's gold contracts was negative $301 million at the end of the quarter, at a spot gold price of $324 an ounce, but the mark- to-market value would approach zero, or breakeven, at a gold price of $307 an ounce, the company said. Barrick surprised observers last month by warning of reduced third-quarter earnings due to operational problems at several mines. As reported, actual earnings in the period were $34 million or 6 cents a share, down from $59 million or 11 cents a share in third quarter of 2001. But the fourth quarter is looking "exactly as we had planned it," with production and costs on track with the company's estimates, said John Carrington, vice chairman and chief operating officer. Barrick's exploration spending in 2002 is expected to total $100 million, officials said on the call. Exploration buudgets for 2003 haven't been finalized. Company Web Site: barrick.com -Lynne Olver, Dow Jones Newswires; 604-669-1595