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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: russet who wrote (12551)	9/3/2004 4:11:42 PM
From: loantech	Respond to of 312361

I knew better than bringing it up. <g> You know your stuff, but the charts do tell a story and a bunch of lunatic bugs like myself have nothing to do with stock performance. So ABX needs to get some decent ore bodies and cut costs and they ramp up the price from there. Take care, good reply. But let's see how it plays out the next couple of years I should still be here and I am sure you will be too. Have a good week end.

To: russet who wrote (12551)	9/3/2004 5:39:47 PM
From: The Vet	Read Replies (1) \| Respond to of 312361

Regardless of what Barrick's hedges are, or how they came to make them, I believe that consistently quoting hedges as a percentage of reserves, and not relative to actual annual production is a tactic designed to hide the real position and mislead investors. On the basis that Barrick use to justify their hedges, a company like Canyon Resources with over 10 million ounces P&P reserve ounces on the books should be able to forward sell 20% of their book reserves or almost 2 million ounces even though they only produce 40,000 ounces a year. CAU may eventually be able to mine the McDonald project, but until they can convert reserves to production then to be financial responsible hedging should be limited to a maximum of one years actual production. The same would apply to Barrick. They have sold gold by hedging from book reserve figures that they will never be able to mine economically..