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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (7405)	3/2/2006 8:44:30 AM
From: loantech	Respond to of 78409

Tyke I knew we could draw you out. <G> Glad to see you around. Off line now for a while back later.

To: tyc:> who wrote (7405)	3/4/2006 2:47:25 PM
From: loantech	Read Replies (4) \| Respond to of 78409

Tyke and all others please weigh in on this as I want to own NGX but am still hesitant. Hello tyke, Okay here we go again. I am the slow student in the class.From the report for NGX: <The remaining deferred hedging loss of $4,561,000, related to the second quarter close out of forward sales contracts will be brought into earnings in 2006 over the period that the related forward sale contracts were originally scheduled for settlement.> $4.5 mill loss for the quarter. Okay. Now I guess to do the financing or operations the banks required that NGX hedge. It was not covered in this report but in the presentation Dara linked a few days back NGX stated they had 139,000 estimated ounces left on hedge and I think they said at $307 per ounce or so. These numbers may not be exact. So does that mean if they delivered all 139,000 ounces at 307 minus a current price let's use 557 that NGX would lose $250 times 139,000 = $34,750,000.00 approximately? Assuming the gold price stays the same or rises does that mean NGX could get hurt bad or that if they wrote of 4.5 mill last quarter that at these prices we would face about 8 more quarters of write down or off or whatever. If so looks bad to me compared to an unhedged producer. Thanks, Tom