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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: vegetarian who wrote (7555)	11/26/1997 1:47:00 PM
From: Mongo Slade	Respond to of 9285

What you don't know is that Barrick has one of the most sophisticated gold price hedging programs in the industry. For the past 10 yrs they have consistently been able to lock into a higher selling price than anyone else. I haven't followed them for a while but the last time I checked (When gold 1st tanked) I was under the impression that they would be insulated for a while. Barrick is a stud company run by winners. My only word of advice is be careful, they are no scam. If it gets any lower I will definitely buy. Mongo.

To: vegetarian who wrote (7555)	11/26/1997 10:38:00 PM
From: Russian Bear	Read Replies (2) \| Respond to of 9285

M. Carter, I must agree with Mongo Slade's comments Re: ABX: exchange2000.com Barrick is a fine company. About a year ago, I had a very substantial position in Trizec-Hahn (then Horsham,) a holding company that is ABX's parent, in a way. I have not been following ABX of late, but I do not think they have changed their basic approach to the mining business in the last year. As I recall, ABX was completely hedged against adverse movements in the price of gold for the next several years. Using forward contracts, ABX locked in a number of years of anticipated output, at a price of $400 - $425 per ounce (the numbers are from memory, but I'm pretty sure that is the range.) Additionally, ABX is a low cost producer, with costs of $225 - $250 per ounce (again, from memory.) Therefore, be very careful. If I had to pick the gold mining company least effected by the reduction in metal prices, it would be ABX. As a matter of fact, I wouldn't be surprized if ABX turns this situation to its advantage by aquiring (dirt-cheap, of course) one or two unhedged producers, marginal at $350/ounce gold, that are now about to be faced with great dificulties. It is just my opinion, but I would probably rather be long ABX than short. Have a wonderful Thanksgiving, everyone. RB