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Gold/Mining/Energy : Royal Oak-RYO -- Ignore unavailable to you. Want to Upgrade?

To: MiamiMike who wrote (715)	3/15/1998 12:53:00 PM
From: David R. Schaller	Read Replies (1) \| Respond to of 1706

MiamiMike, RYO had sold forward a good chunk of this years production, at over $400/oz. Not sure what they have done with their hedging program of late. It would seem that since they have removed a lot of production capacity..it would have offered them the opportunity to close out some of these contracts with very large profits. Obviously not enough to cover the huge cash needs they now are facing. Funny how smart some decisions look when gold is at $400/oz and how dumb at $295. Should be an interesting week, to say the least. Dave

To: MiamiMike who wrote (715)	3/15/1998 1:27:00 PM
From: JCgold3	Respond to of 1706

Mike, I had forgotten that Peggy set up Kemess as a separate company.I remember my negative reaction when I first read it in last year's Annual Report. It wasn't explained and I don't like unexplained actions that could be used in unexpected ways at a later date. An interesting question to pose to Investor Relations. IMHO that it was either a legal ,tax or accounting recommendation to management.

To: MiamiMike who wrote (715)	3/15/1998 4:38:00 PM
From: Bill Jackson	Respond to of 1706

Mike, Arranging assets in discrete areas prevents liens, claims etc from crossing from one loss making company to sap the funds of another money maker. She can choose to send $$ from one to the other, but a case against one cannot force her to fund it unless she chooses to. In addition divisions like this can be sold as entities more easily, if needed and she can close one down and limit costs to what $$ that division holds.(except for trust funds) The gold now being sold at $350-400?, was sold forward some time ago when the price was somewhat higher. Current forward prices would be viewable at assorted metal traders sites, and will be somewhat less than $400, but more than $300. Bill