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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (58902)	5/9/1999 12:30:00 PM
From: Don Lloyd	Respond to of 132070

Mike - ( you have probably read this gold-eagle.com ...) This doesn't make any sense to me. It seems to me that what Barrick is in effect doing is selling OTM covered calls, not hedging per se. With the agreements to delay the delivery requirements, it will only need to deliver its own production, not buy gold in the market. Its risk is that it will only participate in the first 35% or so of a gold price increase and this is only an opportunity cost. Maybe they are doing something else that IS risky, but it is not immediately apparent. Regards, Don