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

To: russet who wrote (12646)	9/4/2004 5:00:42 PM
From: The Vet	Respond to of 312375

They are closing out their hedges. Evidence enough that even Barrick has had second thoughts about hedging! All of the statistical magic that proves that hedging will be profitable, assuming rates of return, assuming the future POG, assuming the rate of inflation, assuming the future value of the dollar, assuming the future cost of production, assuming political stability in the countries where the mines are located, assuming that oil will be available, assuming that power will always be available at a reasonable price, assuming that there is no natural or man made disaster that prevents mining of those reserves...... One year of production enables reasonable assumptions... the longer forward you have to project the more the risk that actual production will simply not meet the anticipated production.