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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: jimsioi who wrote (15622)	6/21/2004 1:06:19 PM
From: Enigma	Respond to of 110194

The sale of the bullion holding was a mistake and raises a question mark about future intentions. McEwen got off lightly at the AGM on that score - although his explanation of his sale of his own shares was fine - he did it for estate planning purposes as he had too much money in one basket and besides he still owns a lot of shares. The mill is quite small - mostly because the grade is so high -but it can be expanded easily to meet future demands.

To: jimsioi who wrote (15622)	6/21/2004 1:59:54 PM
From: Enigma	Respond to of 110194

Re GG (con't). He said he sold the billion because he looked at the charts and saw it was overbought. So this begs the question - when will he do it again? I'm not sure of the tax position - i.e. does bullion inventory qualify as a sale - surely not? So if he's holding back 25% (?) of production in the form of bullion what is the ultimate purpose for this? Maybe a sane use would be to use it as collateral for future acquisitions - the loan would have a low coupon. Or does this edge closer to hedging?