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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: roguedolphin who wrote (7043)	11/12/2007 4:50:49 PM
From: Nihontochicken	Respond to of 50305

The contagion reaches even the gold miners. Northgate Reports Strong Quarterly Production and Record Low Cash Cost biz.yahoo.com Excerpt: "Capital Resources Northgate maintains a portion of its investments in AAA rated Auction Rate Securities (ARS). ARS are floating rate securities that are marketed by financial institutions with auction reset dates at 7, 28, or 35 day intervals to provide short-term liquidity. Beginning in August 2007, a number of ARS auctions began to fail and the Corporation is currently holding $72,600,000 in ARS, which currently lack liquidity. Northgate's ARS investments were originally structured and marketed by a major investment bank in the United States and all of Northgate's ARS investments continue to make regular cash interest payments and are still rated AAA by Standard & Poor's (S&P) and Aaa by Moody's. Due to the high credit worthiness of its ARS investments, third party valuation reports which value these investments at 100% of par value, and management's assessment that the liquidity issues surrounding the specific ASR securities held by the Corporation will be resolved within the next twelve months, these investments continue to be classified by the Corporation at September 30, 2007, as available for sale short-term investments at their original par value, which is equal to their fair value. The balance of the Corporation's investments are held in R1/P1/A1 rated investments including money market funds, direct obligation commercial paper, bankers acceptances and other highly rated short term investment instruments which are recorded as cash and cash equivalents. The Corporation has no investments in Asset Backed Commercial Paper (ABCP), Mortgage Backed Securities (MBS) or Collateralized Debt Obligations (CDO). Based on the Corporation's current cash and investment balances and expected operating cash flows, it does not anticipate that the lack of liquidity for its ARS investments will adversely affect its ability to conduct its business." NC :o/