To: terry richardson who wrote (20943 ) 12/2/2003 11:17:21 PM From: terry richardson Read Replies (2) | Respond to Something to ponder overnight... for those more knowledgeable than I on these matters:lemetropolecafe.com "........Sokalsky said they are in no hurry to cover their hedges. Brilliant, Jamie. Let other hedgers cover their forward sales first. Let THE STALKER ramp up gold another $25 before you cover. I cannot recall another gold producer announce coming buybacks before they have done them. Makes no sense. Why not take a chunk of your cash on hand (over $2 billion) and cover a significnt part of your hedged position and then announce it to the investment world? Something is VERY wrong here...."we’ve got the highest gold reserves in the world at 87million ounces. In fact, four out of every five of our ounces are unhedged. However, in this environment, we recognize the fact that there is a discount ascribed to the hedge position and we want to change that. We want to increase the share price by eliminating the hedge position..."We’ve been reducing our gold hedge position quite substantially over the last 18 months by about a third from 24 million ounces down to 16 million ounces. And now, we’ve further extended that to say that we’re adopting a no hedge policy, with a further goal of reducing our hedge policy prudently over time to zero...." "JS... I think this is a sustainable gold rally. This is a weak US Dollar reflationary story and we feel that we’re still in a protracted US Dollar bear market. So, we feel that this rally still has some room to go and we’re poised to benefit significantly from it.it certainly can continue to grow throughout the four hundreds. As you mentioned, we’re at almost eight-year highs and we think we can continue to move up. We’ve seen higher levels in the past."
