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 : Caussa Capital (formerly Antares) T.CAU -- Ignore unavailable to you. Want to Upgrade?

To: Lamont who wrote (3600)	6/24/1998 11:42:00 AM
From: bill718	Read Replies (1) \| Respond to of 4718

The McDonalds loan and Kazakhstan: The " loan to MacDonalds" is a Bankers Acceptance or BA. I understand this is one of the most standard investments any company can make. Any company with cash wants it to earn money for them while they do not need it. Meanwhile other companies need short term finance pending cash flow. The Chartered banks put the two together in a structured form adding their own guarantee. Many companies with cash flow do it. The structure is normally 30, 60, or 90 days. Company A goes to the bank and says they want to put X amount out for 30, 60, or 90 days and the bank writes a BA which another company who needs cash takes up. The borrowing company has to have a credit rating to satisfy the bank as they are guaranteeing it. In the case of ANZ, the borrower that the bank produced was MacDonalds but it could easily have been another organization. Also, the money being out over year end allows ANZ a little relief from capital tax. **************************************************************** Kazakstan: keep this in mind as you read the non-stop negative crap posted here ... The open pit Mizek gold heap leach project is expected to produce 80,000 ounces of gold in its first year of operation at a cash cost of approximately $120 (U.S.) per ounce, starting as early as next year.