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Rob Kirby-GATA
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Re: Rob Kirby-GATA
Ron Kirby's concern that Barrick is not raising nearly enough money to cover its gold hedges is unfounded, from what I recall. Somewhere else on iTulip there should be a thread from last week detailing Barrick's situation. I believe they have something like $3 billion of fixed priced hedges (contracts to deliver gold in the future at a fixed price of under $400, which is a lousy deal for Barrick when gold is $1000) and the rest of their future contracts are at floating prices, so don't really hedge the price and don't present as serious a risk to Barrick's bottom line if gold's price changes.Most folks are good; a few aren't.
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