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Gold/Mining/Energy : Newmont Mining(NEM) & Newmont Gold(NGC) -- Ignore unavailable to you. Want to Upgrade?

To: dwight vickers who wrote (96)	3/29/1999 8:20:00 PM
From: ahhaha	Read Replies (2) \| Respond to of 587

I've never posted here before but NEM's chart indicates that it is the strongest relative strength major gold stock. That may not strictly be true on a computational basis, but it's true on an every trade analysis. I want to congratulate the boss on this company's strategy. It is what I want to hear from a gold company in which I invest: biz.yahoo.com Gold prices are currently around $280 an ounce, hovering near their lowest level in six months. And yet, Newmont wears its unwillingness to hedge its production like a badge of honor. ''When people buy a gold stock, they want the exposure to the commodity,'' he explained. "If you're selling forward, you run the risk of capping your upside. And the shareholder is likely to say, 'Why did I pay a premium for a company that's limited its upside?' ''At Newmont, our hedge, if you will, is our low cost,'' Cambre said. ''We are able to service our debt and indeed reduce our debt assuming a gold price at $300 an ounce. And it's our low cost that permits us to do that. There aren't many gold producers who can claim that. Many of them have to sell forward at $350 in order to make money. We don't hedge because we don't have to.'' Asked if he would consider hedging strategies that leave the upside open, such as put options, which preserve the upside potential, Cambre said, ''We obviously look at those strategies from time to time. But given where the price of gold is right now, that doesn't look like an attractive strategy at this point.''