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: loantech who wrote (59008)	4/22/2008 8:41:25 PM
From: ogi	Read Replies (1) \| Respond to of 78421

Hugh Cleland's right hand man, whatever Captial Corp that is.... River????

To: loantech who wrote (59008)	4/22/2008 9:23:04 PM
From: Rocket Red	Read Replies (1) \| Respond to of 78421

Hedging Activities Our preferred approach is to avoid hedging and provide our shareholders with leverage to changes in the price of gold by selling in the spot market. Under the terms of the term loan facility which we negotiated in early 2007, we were required to enter into a gold hedging program acceptable to the banking syndicate. In June, 2007 we entered into a series of flat forward sales contracts for 429,000 ounces of gold at a price of $801 per ounce. These hedging contracts represent a commitment of 5,500 ounces per month for 78 months commencing July 2008 with the last commitment deliverable in December 2014. Western Goldfields Inc. Annual Report 2007 10 The Company has not designated these contracts as cash flow hedges. Accordingly the hedge accounting rules of SFAS No. 133 are not being applied and the period-end mark-to-market of these contracts is immediately reflected on the income statement of the Company and the cumulative effect is reflected as an asset or liability on the balance sheet. At December 31, 2007, the spot price for gold was $836 per ounce as compared with our forward sale price of $801, which resulted in our recording an unrealized loss and a long term liability of $58.9 million.