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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Ross who wrote (568)	4/12/1998 11:55:00 PM
From: Greg Ford	Respond to of 3558

I just had a look at ABX's latest proxy. It must just be a coincident that the Board of ABX approved the issuance of options to senior management at close to 52 week lows. They issued the options effective sometime in December 1997 when ABX was trading at somewhere around $22 per share. They also changed their disclosure of compensation from Canadian dollars to US dollar equivalents even though the compensation is paid in Canadian dollars. I guess perception is everything, as the number ie dollars looks lower in US terms. I also noticed that ABX added over 1 million ounces to its year 2000 hedge position in the 4th quarter. How do they get $400 per ounce for year 2000 with the prevailing gold price and contango rates of less than 4% per annum. At $330 per ounce gold (which is very optimistic given that gold averaged about $307 in the 4th quarter) the all in future price would be around $370 assuming that the positions all came due at the end of the year 2000. Once again perception is everything. Smoke and mirrors. Greg