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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (33829)	11/23/2003 8:47:44 PM
From: Andrew	Respond to of 36161

Barrick since 96 and before has been actively selling forward and most recently had about 3 years production sold forward or 20% of reserves. I can recall seeing them report realizing 380 an ounce when gold was below 300. They made a lot of money shorting gold while it dropped from 400 to 250, about $2 Billion. The amount that they may or may not be underwater now is nowhere near that. Further I think that with Barrick's strong balance sheet they can unravel the hedgebook without too much damage. I've been wondering if Barrick or any other Senior producers have hedged the $USD, this could offset the rise in gold. You would think the SA producers would have been all over that. Peter Munk's announcement comes at an interesting time, his statements are bullish for gold and I'm sure Barrick is not suicidal with 400 gold looming.