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

To: Bill Murphy who wrote (954)	2/10/1999 6:27:00 PM
From: Zardoz	Read Replies (2) \| Respond to of 3558

Well, maybe. But I doubt it would move the POG past $25.00/Oz. If you assume that their is 8000 tons {as the number the gold bulls suggest} then include Barricks hedge position of 300 tons, and add in 700 more from others, you are at 1,000 tons of the 8,000 tons{12.5%}. Since this was forward sold against production, you would see the POG move past the point where they hedged from {$330} which would itself eat into much of the profitablity of ABX and other hedgers. So you'd more likely see them NOT buy back, but actually sell into a rally, should one develope. ABX, & others, desire is to keep the POG just below the point where the other more juniors are just not profitable to produce. And if PDG is similiar then they would each sell into rallies, and cover in downtrends. Most of all, how much off the short position is actually covered? 75%? 90%? ABX main amount of money has come from HEDGING. This is there profitable dept. One need only look at the 33% of earnings that came directly from forward selling {with near zero costs}. This is how they have achieved an $88/Oz from forward selling for 1997. barrick.com To suggest that ABX aid in pushing the POG higher, would be the same as suggesting that the USA Government is the largest player in the gold markets. One need only check with the BOE to realize that they buy and sell billions a quarter in gold. This is how they stablize their currencies. Yet many believe that the USA Gov is the manipulators.