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: marcos who wrote (60574)	7/28/2008 3:59:00 PM
From: tyc:>	Read Replies (2) \| Respond to of 78416

See text following

To: marcos who wrote (60574)	7/28/2008 4:17:27 PM
From: orkrious	Read Replies (3) \| Respond to of 78416

Bought bits of mmg thanks for getting it going. it just needed a push. <g> people really disappointed with New Gold, troubles at two mines, long run they do better imho but we could get a real dump first you may have some MRB holders who didn't know that are selling, but the problems at the two Peak mines were well known before the merger.

To: marcos who wrote (60574)	7/28/2008 7:49:35 PM
From: LoneClone	Read Replies (1) \| Respond to of 78416

I guess I don't understand hedges. I am referring to this paragraph from USA today. "During the past month, the Company unwound some of its hedges involving lead that had been put in place during the 4th quarter 2007. Originally, the company had contracted to sell over 6 million pounds of lead during 2008 at an average price of over US $1.55 per pound. The Company unwound approximately 4 million pounds of lead hedges by late June 2008 at an average price of approximately US $0.75 per pound. The gain on these transactions will be booked over the remainder of 2008 in the respective months of the original maturity of each contract closed. Remaining lead hedge contracts run from December 2008 through May 2009. As lead production forecasts are refined, additional lead forward sales may be executed. As always, the Company remains totally unhedged with respect to silver production." If they have these brilliant hedges to sell the lead at $1.55 a pound, why would they unwind them at $0.75 a pound forgoing 80 cents on each and every pound of lead they deliver? Where does the gain that they referred to come from, because it looks like a loss to me. I sure hope it is just that I am not understanding what they are doing! LC