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 : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: AlphaRomero who wrote (18493)	5/13/2010 9:45:34 AM
From: loantech	Respond to of 48092

Thanks Alpha here it is, <<<<<<<Chris Lichtenheldt – UBS Okay, thanks. And just I guess last question on that, I mean, during the first quarter, you probably mined in terms of value more base metal than precious, have you contemplated hedging any of that in order to sort of accentuate the exposure you have to silver and gold or what are your thoughts on that? Phil Baker Yeah, in fact as Jim mentioned, we are – have already hedged the metal related to provisional payments and we have lines in place, relationships established with counterparties to hedge out further than that, so we're in a position to do hedging going out two to three years for about 50% of our base metals production. Jim, do you want to add anything? Jim Sabala No. Chris Lichtenheldt – UBS Okay, so that's something you're contemplating and what would – Jim Sabala We've already started hedging – Chris Lichtenheldt – UBS On the provisional. Jim Sabala On provisional and we are in progress hedging out further. But it's not something that we're rushing into. We will layer in hedges over the course of weeks, months, quarters to get to that 50% level. Chris Lichtenheldt – UBS I see, okay. That's it for me. Thanks a lot. Jim Sabala Thank you, Chris. Operator (Operator Instructions) Your next question comes from the line of David Christie with Scotia Capital. David Christie – Scotia Capital Good morning guys. Just a couple of quick questions. First on, I want to go back to that hedging comment there for a minute. So you've hedged out the provisional pricing for the concentrates that you haven't settled yet, right? Phil Baker What percentage of it have we hedged, Jim? Jim Sabala All 95% of the provisional stuff is scheduled for settlement in Q2. Phil Baker Yeah, and that's the base metals component of it. David Christie – Scotia Capital So that's the metals you were listing earlier like, whatever – was the 370,000 ounces of silver and –? Phil Baker No, we haven't hedged the precious, it's hedged the – David Christie – Scotia Capital Just the base metals, okay? Jim Sabala And it's more than that. It's the things that are in the pipeline to be settled, so it's 95% of our total quarterly production in effect for base metals. David Christie – Scotia Capital So it's the mark-to-market part of it, right? Phil Baker Exactly, yeah. David Christie – Scotia Capital And how much of your revenue this quarter was mark-to-market numbers? I know – we know that 3 million was a settlement adjustment for provisional pricing from last quarter. Jim Sabala I don't have that exact number because we don't break it down in metals but it typically runs about 45% of our aggregate revenues. David Christie – Scotia Capital Can I get the numbers, will someone send it to me the difference because you have the $3 million that you said was provisional pricing adjustments which I assume is settlement losses, right? Jim Sabala That's right. David Christie – Scotia Capital And I just wanted to know what the actual mark-to-market amount was. Jim Sabala Well the mark-to-market from the previous quarter was $3 million. David Christie – Scotia Capital But that's the amount that was settled, right? Jim Sabala No, it's the total aggregate mark-to-market including what's settled and what's exposed at the end of the quarter. seekingalpha.com