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Gold/Mining/Energy : ZINC The base metal. News and Views. Symbol Zn -- Ignore unavailable to you. Want to Upgrade?

To: Condor who wrote (962)	1/26/2006 8:11:23 PM
From: tyc:>	Read Replies (1) \| Respond to of 3270

I believe the essential point here is that YZC is considering forward selling its silver to finance the building of a mine. This is in contrast to (say) Barrick's hedging which forward sold gold reserves to buy bonds. Surely the on-going profits from the mine will provide a worthwhile return on the sale price of the silver. The alternative is further dilution of existing shareholders by sale of more equity.

To: Condor who wrote (962)	1/26/2006 9:54:49 PM
From: maxncompany	Respond to of 3270

In a bull market the vast majority of investors prefer no hedge to a hedge. Of course, we are not in a perfect world, and sometimes hedges make sense to get the financing accomplished. EPM is doing nicely, mostly because they will be very profitable. And initially at least, investors were pleased when the news announced the hedged price would be quite a bit higher than the then POG. By the time EPM production starts, I expect the POG will be higher than the hedged price. The POG has already risen a lot since the news was announced. But I'm not negative on EPM, they will be very profitable, hedge or no hedge. As for Yukon, as I said, my main beef with them is the number of shares, which is why I prefer MMGG.