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Gold/Mining/Energy : Medinah Mining Inc. (MDHM) -- Ignore unavailable to you. Want to Upgrade?

To: J. Nelson who wrote (3376)	6/12/1998 4:53:00 PM
From: James Berg	Read Replies (1) \| Respond to of 25548

Edit: It is apparent that DAY is still losing money, and I have no idea how much they've paid for the puts that they use to hedge their production. However, here is the relevant info: From Dayton's financial statements (22 May 1998) at sedar.com : 10 Hedging At December 31, 1997, the Company's gold hedging program consisted of the following: 1998 1999 ____________ ___________ Put options (ounces) 73,500 - Average price per ounce (US$) $ 380 - Call options (ounces) 21,910 7,460 Average price per ounce (US$) $ 434 $ 434 The fair value of the Company's gold put options and gold call options amounts to US$6,270,000. This fair value represents the amount that the Company would have received on December 31, 1997 to settle these instruments prior to their expiry dates. Subsequent to the end of the year, the Company revised its hedging program (refer to note 18). The credit risk exposure related to the Company's gold hedging activities is limited to the unrealized gains on outstanding contracts based on current market prices. The counterparties to the gold hedging are also lenders to the company and are large international credit-worthy institutions. But, Note 18 says, among other things: 18 Subsequent Events A ) HEDGING PROGRAM In March 1998, the Company revised its gold put hedging program. The revised put program is: 1998 1999 ___________ ___________ Put options (ounces) 72,750 84,000 Average price per ounce (US$) $ 352 $ 340 --James