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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Techplayer who wrote (12566)	11/12/2002 2:47:52 PM
From: James C. Mc Gowan	Read Replies (1) \| Respond to of 57110

Yep, Gold must be in. BTW: Newmont says it's a non hedger, but they have bought another outfit that still has heavy hedging. (From the news release) Newmont's gold output in the third quarter was 2.1 million ounces at a cash cost of $189 an ounce. Third-quarter revenue rose to $728.3 million from $421.1 million a year earlier. Newmont merged with Canada's Franco Nevada Mining and Australia's Normandy Mining this year, making it the No. 1 gold company in terms of output. The company now produces about 7 million ounces a year. In order to maintain maximum exposure to the price of gold, Newmont pledged to unwind Normandy's large forward gold sales contract. Many mining companies have used forward sales to lock in prices for gold still in the ground and to generate revenue when gold prices were weak. Newmont is a committed non-hedger. Newmont said it shrank the hedge book by 928,000 total ounces in the quarter, which reduced committed ounces outstanding to 5.8 million ounces, roughly equivalent to 10 months of production. It inherited a hedge book of about 10 million ounces from Normandy. Michael Dudas, managing directors and mining analyst at Bear Stearns, said: "The reduction of the hedge books has been and will continue to be supportive for the market in our view and we think that gold prices will continue to trade higher. So that will benefit Newmont and its shareholders." Anyway, your right, this kind of report would have killed most stocks, but not Gold. James