Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: SwampDogg who wrote (7466)	3/2/2006 9:11:46 PM
From: tyc:>	Respond to of 78410

edit

To: SwampDogg who wrote (7466)	3/2/2006 9:42:17 PM
From: LLCF	Read Replies (1) \| Respond to of 78410

I find this interesting from their 05' report: <<In 2005, we sold most of our production at market prices, and delivered approximately 0.8 million ounces into gold sales contracts. We realized an average gold sales price of $439 per ounce>> Hmmm... well when you gonna deliver those $300 per oz gold?? -ggg- OTOH: <<Fixed-price Corporate Gold Sales Contracts, which at December 31, 2005 totaled 6.0 million ounces, represent approximately one year of Barrick's expected future gold production (excluding Placer Dome) and approximately 8.5% of our proven and probable reserves, in each case excluding Pascua-Lama and Placer Dome.>> Is underwhelming as far as risk going forward... and according to Barrick your assertion: <<These 6.5 million oz were sold forward at an average price of $378>> is actually: <<Future estimated average $378/oz.(2) realizable selling price.>> <<(3) At a spot gold price of $513 per ounce and market interest rates.>> which appears to mean the $378 is minus production costs... don't know. Anyway, as you say, we will see how ABX pans out. I would't buy the thing in any case as those contracts have some funky dates as far out as 2019?? Strange. OTOH, as their hedges get paid off... (as soon as a year or two) and their reserves are unencumbered.... wowa, this thing could be a rocket ship. dAK